EWA closes lower for the 2nd day in a row


iShares MSCI Australia ETF (EWA) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team

Highlights

EWA tanks -1.92% on high volume
EWA breaks back below 200-day moving average
EWA closes lower for the 2nd day in a row
EWA breaks below Thursday's low

Overview

Moving lower for the 2nd day in a row, EWA finished the month 3.32% higher at 19.91 after tanking $0.39 (-1.92%) today on high volume. This is the biggest single-day loss in over a month. The last time we've seen such an unusually strong single-day loss on June 11th, EWA actually gained 1.86% on the following trading day. Closing below Thursday's low at 19.93, the market confirmed its breakout through the prior session low after trading up to $0.24 below it intraday.

Daily Candlestick Chart (EWA as at Jul 31, 2020):

Daily technical analysis candlestick chart for iShares MSCI Australia ETF (EWA) as at Jul 31, 2020

Friday's trading range has been $0.43 (2.14%), that's far above the last trading month's daily average range of $0.25. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EWA.

The ETF closed back below the 200-day moving average at 20.10 for the first time since July 24th.

Although EWA is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.

Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 200" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for EWA. Out of 53 times, EWA closed higher 56.60% 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 67.92% with an average market move of 0.28%.


Market Conditions for EWA as at Jul 31, 2020

Loading Market Conditions for EWA (iShares MSCI Australia ETF)...
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