EWA dominated by bulls lifting the market higher throughout the day
iShares MSCI Australia ETF (EWA) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EWA finished the month 6.7% higher at 19.27 after gaining $0.12 (0.63%) today on low volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 19.17, the ETF confirmed its breakout through the prior session high after trading up to $0.18 above it intraday.
Daily Candlestick Chart (EWA as at Jun 30, 2020):
Tuesday's trading range has been $0.25 (1.31%), that's below the last trading month's daily average range of $0.37. 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 EWA.
One bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 19.28 (R1), the market closed below it after spiking up to 19.35 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on June 23rd, EWA lost -2.82% on the following trading day.
EWA shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the nearby swing high at 19.67 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for EWA. Out of 735 times, EWA closed higher 53.06% 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 five trading days, showing a win rate of 52.11% with an average market move of 0.11%.