DVY closes lower for the 2nd day in a row
iShares Select Dividend ETF (DVY) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DVY finished the week 0.71% higher at 106.16 after losing $0.25 (-0.23%) today ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (DVY as at Feb 14, 2020):
Friday's trading range has been $0.68 (0.64%), that's below the last trading month's daily average range of $0.87. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DVY.
Regardless of a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on January 24th, DVY lost -1.43% on the following trading day.
After trading down to 105.81 earlier during the day, the ETF bounced off the key technical support level at 105.98 (S1). The failure to close below the support could increase that levels importance as support going forward. After having been unable to move lower than 105.87 in the prior session, DVY found buyers again around the same price level today at 105.81.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 107.03 where further buy stops could get activated. With prices trading close to this year's high at 107.36, upside momentum might speed up should the market be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for DVY. Out of 293 times, DVY closed higher 58.36% 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 61.77% with an average market move of 0.62%.