ACWI ends the day indecisive
iShares MSCI ACWI Index Fund (ACWI) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
ACWI ended the week -1.22% lower at 71.99 after losing $0.55 (-0.76%) today. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (ACWI as at May 17, 2019):
Friday's trading range has been $0.62 (0.86%), that's slightly below the last trading month's daily average range of $0.67. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ACWI.
Three candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern, one bearish pattern, the Gravestone Doji and one neutral pattern, the Doji. The last time a Gravestone Doji showed up on March 20th, ACWI actually gained 0.71% on the following trading day.
Though the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Gravestone Doji" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for iShares MSCI. Out of 23 times, ACWI closed higher 52.17% 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 69.57% with an average market move of 0.87%.