EMLC stuck within tight trading range
VanEck Vectors J.P. Morgan EM Local Currency Bond (EMLC) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
EMLC finished the month -0.29% lower at 30.74 after edging lower $0.03 (-0.1%) today. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (EMLC as at Jun 30, 2020):
Tuesday's trading range has been $0.13 (0.42%), that's far below the last trading month's daily average range of $0.27. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for EMLC. Prices continued to consolidate within a tight trading range between 30.64 and 30.90 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on June 8th, EMLC lost -0.60% on the following trading day.
Prices are trading close to the key technical resistance level at 30.83 (R1).
VanEck Vectors shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 30.90 where further buy stops could get triggered. As prices are trading close to June's low at 30.62, downside momentum might accelerate should the market mark new lows for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for VanEck Vectors. Out of 194 times, EMLC closed higher 49.48% of the time on the next trading day after the market condition occurred.