DVY dominated by bulls lifting the market higher throughout the day
iShares Select Dividend ETF (DVY) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, DVY finished Thursday at 74.97 gaining $4.82 (6.87%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 73.42, the market confirmed its breakout through the prior session high after trading up to $2.18 above it intraday.
Daily Candlestick Chart (DVY as at Mar 26, 2020):
Thursday's trading range has been $5.15 (7.31%), that's slightly above the last trading month's daily average range of $4.74. 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 strongly higher than usual for DVY.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, DVY gained 0.91% on the following trading day.
Buyers managed to take out the key technical resistance level at 73.95 (now S1), which is likely to act as support going forward.
While the ETF is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the nearby swing high at 76.75 where further buy stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for DVY. Out of 793 times, DVY closed higher 53.97% 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 58.89% with an average market move of 0.16%.