DVY plummets, losing $2.39 (-2.83%) within a single day
iShares Select Dividend ETF (DVY) Technical Analysis Report for Sep 21, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, DVY ended Monday at 82.21 tanking $2.39 (-2.83%). This is the biggest single-day loss in over two months. Today's close at 82.21 marks the lowest recorded closing price since July 20th.
Daily Candlestick Chart (DVY as at Sep 21, 2020):
Monday's trading range has been $2.28 (2.74%), that's far above the last trading month's daily average range of $1.56. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DVY.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
After trading down to 81.24 earlier during the day, the market bounced off the key technical support level at 81.39 (S1). The failure to close below the support might increase that levels importance as support going forward. The ETF closed below the 100-day moving average at 82.61 for the first time since July 13th. When this moving average was crossed below the last time on June 11th, DVY actually gained 1.20% on the following trading day.
Crossing below the lower Bollinger Band for the first time since September 10th, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 84.80 or signal the beginning of a strong momentum breakout leading to even lower prices.
DVY shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for DVY. Out of 68 times, DVY closed higher 60.29% 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 60.29% with an average market move of 0.21%.