EWC dominated by bulls lifting the market higher throughout the day
iShares MSCI Canada ETF (EWC) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EWC finished the month 2.94% higher at 25.88 after gaining $0.38 (1.49%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 25.57, the ETF confirmed its breakout through the previous session high after trading up to $0.41 above it intraday.
Daily Candlestick Chart (EWC as at Jun 30, 2020):
Tuesday's trading range has been $0.62 (2.44%), that's above the last trading month's daily average range of $0.49. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EWC.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 23rd, EWC lost -2.38% on the following trading day.
Prices are trading close to the key technical resistance level at 26.22 (R1).
The market 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 nearby swing high at 26.30 where further buy stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for EWC. Out of 97 times, EWC closed higher 57.73% 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 53.61% with an average market move of 0.46%.