EFA breaks above 100-day moving average for the first time since February 21st
iShares MSCI EAFE ETF (EFA) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
EFA finished Monday at 60.97 surging $1.33 (2.23%). Today's close at 60.97 marks the highest recorded closing price since March 6th. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (EFA as at Jun 01, 2020):
Monday's trading range has been $0.91 (1.51%), that's above the last trading month's daily average range of $0.70. 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 higher than usual for EFA.
One bullish candlestick pattern matches today's price action, the White Candle.
EAFE ETF managed to close above the 100-day moving average at 60.00 for the first time since February 21st. When this moving average was crossed above the last time on February 3rd, EFA gained 1.67% on the following trading day.
Crossing above the upper Bollinger Band for the first time since May 28th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 57.07 or signal the beginning of a strong momentum breakout leading to even higher prices.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 11 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 134 times, EFA closed higher 51.49% 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 61.94% with an average market move of 0.06%.