EWC runs into sellers again around 22.20
iShares MSCI Canada ETF (EWC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EWC ended Thursday at 21.78 gaining $0.70 (3.32%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (EWC as at Mar 26, 2020):
Thursday's trading range has been $0.99 (4.65%), that's slightly below the last trading month's daily average range of $1.25. 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 significantly higher than usual for EWC.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, EWC gained 5.82% on the following trading day.
After having been unable to move above 22.13 in the prior session, the ETF ran into sellers again around the same price level today, missing to move higher than 22.20.
While the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for EWC. Out of 485 times, EWC closed higher 55.88% of the time on the next trading day after the market condition occurred.