BND closes above its opening price after recovering from early selling pressure
Vanguard Total Bond Market ETF (BND) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, BND ended the month 1.27% higher at 89.46 after gaining $0.12 (0.13%) today on high volume. Today's close at 89.46 marks the highest recorded closing price ever. Trading up to $0.08 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 89.37, the ETF confirmed its breakout through the prior session high after trading up to $0.10 above it intraday.
Daily Candlestick Chart (BND as at Jul 31, 2020):
Friday's trading range has been $0.20 (0.22%), that's above the last trading month's daily average range of $0.15. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BND.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on March 16th, BND actually lost -2.07% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 89.27 earlier during the day, Vanguard Total bounced off the key technical support level at 89.28 (S1). The failure to close below the support could increase that levels significance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Vanguard Total. Out of 370 times, BND closed higher 56.49% 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 55.41% with an average market move of 0.05%.