EEM runs into sellers again around 44.47
iShares MSCI Emerging Markets ETF (EEM) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
EEM finished the week 1.94% higher at 44.20 after edging higher $0.02 (0.05%) today on low volume ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (EEM as at Feb 14, 2020):
Friday's trading range has been $0.43 (0.97%), that's slightly below the last trading month's daily average range of $0.49. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EEM.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 43.79 (S1). Prices are trading close to the key technical resistance level at 44.59 (R1). After having been unable to move above 44.45 in the prior session, EEM ETF ran into sellers again around the same price level today, missing to move higher than 44.47. The last time this happened on Monday, EEM actually gained 1.31% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for EEM ETF. Out of 80 times, EEM closed higher 60.00% of the time on the next trading day after the market condition occurred.