EWG closes above its opening price after recovering from early selling pressure
iShares MSCI Germany ETF (EWG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
EWG ended the week 6.74% higher at 24.23 after gaining $0.08 (0.33%) today on low volume ahead of tomorrow's Memorial Day market holiday. Trading up to $0.14 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (EWG as at May 22, 2020):
Friday's trading range has been $0.21 (0.87%), that's far below the last trading month's daily average range of $0.38. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EWG.
Buyers managed to take out the key technical resistance level at 24.17 (now S1), which is likely to act as support going forward. The last time this happened on May 15th, EWG gained 5.95% on the following trading day. After having been unable to move lower than 24.07 in the previous session, the market found buyers again around the same price level today at 24.02.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 24.58 where further buy stops could get activated.
Among the six 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 149 times, EWG closed higher 56.38% of the time on the next trading day after the market condition occurred.