AAXJ finds buyers around 68.86 for the third day in a row
iShares MSCI All Country Asia ex Japan Index Fund (AAXJ) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
AAXJ finished the month 6.96% higher at 69.17 after losing $0.21 (-0.3%) today. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AAXJ as at Jun 30, 2020):
Tuesday's trading range has been $0.58 (0.84%), that's below the last trading month's daily average range of $0.89. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AAXJ. Prices continued to consolidate within a tight trading range between 68.72 and 69.78 where it has been caught now for the last three trading days.
Prices are trading close to the key technical support level at 68.72 (S1). The market found buyers again today around 68.86 for the third trading day in a row after having found demand at 68.72 in the prior session and at 68.86 two days ago. The last time this happened on June 19th, AAXJ gained 1.47% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could speed up should prices move below the nearby swing low at 68.72 where further sell stops might get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for iShares MSCI. Out of 615 times, AAXJ closed higher 54.96% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.59% with an average market move of 0.26%.