PT breaks above 20-day moving average for the first time since July 22nd
Pintec Technology Holdings Limited (PT) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PT ended Wednesday at 0.88 surging $0.10 (12.82%), significantly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over two months. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (PT as at Sep 16, 2020):
Wednesday's trading range has been $0.09 (11.25%), that's above the last trading month's daily average range of $0.07. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PT.
Two candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns.
The share managed to close above the 20-day moving average at 0.87 for the first time since July 22nd. When this moving average was crossed above the last time on June 17th, PT actually lost -7.50% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 0.93 where further buy stops could get triggered. As prices are trading close to September's high at 0.95, upside momentum might speed up should the market mark new highs for the month.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Closing Marubozu" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Pintec Technology. Out of 6 times, PT closed lower 83.33% 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 six trading days, showing a win rate of 66.67% with an average market move of -1.58%.