EWA closes higher for the 3rd day in a row
iShares MSCI Australia ETF (EWA) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EWA ended Thursday at 15.68 gaining $0.69 (4.6%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 15.33, the market confirmed its breakout through the previous session high after trading up to $0.45 above it intraday.
Daily Candlestick Chart (EWA as at Mar 26, 2020):
Thursday's trading range has been $0.62 (4.08%), that's below the last trading month's daily average range of $0.76. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EWA.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, EWA gained 4.17% on the following trading day.
Prices are trading close to the key technical support level at 14.82 (S1).
Although the ETF is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for EWA. Out of 228 times, EWA closed higher 51.32% 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 four trading days, showing a win rate of 55.26% with an average market move of 0.11%.