EWG pushes through key technical resistance level
iShares MSCI Germany ETF (EWG) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, EWG ended Thursday at 21.98 gaining $0.86 (4.07%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 21.50, the ETF confirmed its breakout through the prior session high after trading up to $0.53 above it intraday.
Daily Candlestick Chart (EWG as at Mar 26, 2020):
Thursday's trading range has been $0.90 (4.26%), that's slightly below the last trading month's daily average range of $0.96. 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 strongly higher than usual for EWG.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, EWG gained 2.57% on the following trading day.
Buyers managed to take out the key technical resistance level at 21.66 (now S1), which is likely to act as support going forward.
Though 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 seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for EWG. Out of 150 times, EWG closed higher 57.33% of the time on the next trading day after the market condition occurred.