PT closes within prior day's range after lackluster session
Pintec Technology Holdings Limited (PT) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
PT ended the month unchanged at 1.19 after losing $0.05 (-4.03%) today, notably underperforming the S&P 500 (0.77%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (PT as at Jul 31, 2020):
Friday's trading range has been $0.06 (4.84%), that's below the last trading month's daily average range of $0.13. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for PT.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving higher in the previous session, the market closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on May 4th, PT actually gained 6.61% on the following trading day.
Prices broke below the key technical support level at 1.22 (now R1), which is likely to act as resistance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 1.30 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 1.11 where further sell stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Its common bearish interpretation has been confirmed for Pintec Technology. Out of 20 times, PT closed lower 65.00% 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 70.00% with an average market move of -14.29%.