DVY closes above its opening price after recovering from early selling pressure
iShares Select Dividend ETF (DVY) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
DVY finished the week 4.74% higher at 78.63 after edging higher $0.08 (0.1%) today on low volume ahead of tomorrow's Memorial Day market holiday. Trading up to $0.57 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 15th, DVY gained 5.12% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (DVY as at May 22, 2020):
Friday's trading range has been $0.79 (1.01%), that's far below the last trading month's daily average range of $1.70. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DVY. Prices continued to consolidate within a tight trading range between 77.44 and 79.42 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Hanging Man.
After trading as low as 77.89 during the day, the ETF found support at the 20-day moving average at 78.19.
DVY shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the close-by swing high at 79.37 where further buy stops might get activated. As prices are trading close to May's high at 79.59, upside momentum could speed up should the market mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. Its common bullish interpretation has been confirmed for DVY. Out of 83 times, DVY closed higher 63.86% 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 two trading days, showing a win rate of 62.65% with an average market move of 0.15%.