EFA dominated by bulls lifting the market higher throughout the day
iShares MSCI EAFE ETF (EFA) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EFA ended Thursday at 54.41 gaining $2.33 (4.47%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 52.91, the ETF confirmed its breakout through the previous session high after trading up to $1.58 above it intraday.
Daily Candlestick Chart (EFA as at Mar 26, 2020):
Thursday's trading range has been $2.11 (4.03%), that's slightly above the last trading month's daily average range of $2.08. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EFA.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 17th, EFA actually lost -5.73% on the following trading day.
Buyers managed to take out the key technical resistance level at 53.30 (now S1), which is likely to act as support going forward.
While EAFE ETF is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for EAFE ETF. Out of 137 times, EFA closed higher 51.82% 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 62.77% with an average market move of 0.12%.