PT finds buyers around 1.17 for the forth day in a row
Pintec Technology Holdings Limited (PT) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
PT ended the month 46.91% higher at 1.19 after losing $0.02 (-1.65%) today, strongly underperforming the S&P 500 (1.54%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (PT as at Jun 30, 2020):
Tuesday's trading range has been $0.05 (4.27%), that's below the last trading month's daily average range of $0.17. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for PT. Prices continued to consolidate within a tight trading range between 1.15 and 1.30 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 1.14 (S1). The stock was bought again around 1.17 after having seen lows at 1.15, 1.15 and 1.15 in the last three trading sessions. Obviously there is something going on at that level.
Although the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the close-by swing high at 1.23 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 1.11 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bearish for Pintec Technology. Out of 98 times, PT closed lower 60.20% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 70.41% with an average market move of -11.79%.