EWC breaks below Tuesday's low
iShares MSCI Canada ETF (EWC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
EWC finished Wednesday at 27.94 losing $0.24 (-0.85%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 28.15, the ETF confirmed its breakout through the prior session low after trading up to $0.21 below it intraday.
Daily Candlestick Chart (EWC as at Sep 16, 2020):
Wednesday's trading range has been $0.42 (1.48%), that's slightly above the last trading month's daily average range of $0.38. 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 higher than usual for EWC.
Two candlestick patterns are matching today's price action, the Bearish Closing Marubozu and the Black Candle which are both known as bearish patterns. The last time a Bearish Closing Marubozu showed up on May 12th, EWC lost -2.57% on the following trading day.
While the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could accelerate should prices move below the close-by swing low at 27.73 where further sell stops might get activated. Further selling could move prices lower should the market test August's nearby low at 27.29.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Closing Marubozu" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for EWC. Out of 34 times, EWC closed higher 55.88% of the time on the next trading day after the market condition occurred.