EIDO breaks below Monday's low
iShares MSCI Indonesia (EIDO) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
EIDO ended the month 3.99% higher at 18.00 after losing $0.33 (-1.8%) today on high volume. Closing below Monday's low at 18.11, the ETF confirmed its breakout through the prior session low after trading up to $0.21 below it intraday.
Daily Candlestick Chart (EIDO as at Jun 30, 2020):
Tuesday's trading range has been $0.24 (1.32%), that's below the last trading month's daily average range of $0.36. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for EIDO.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on June 18th, EIDO actually lost -0.43% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
As prices are trading close to June's low at 17.55, downside momentum could speed up should iShares MSCI mark new lows for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for iShares MSCI. Out of 274 times, EIDO closed higher 57.66% 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 58.03% with an average market move of 0.66%.