EWG pushes through Monday's high
iShares MSCI Germany ETF (EWG) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EWG ended the month 5.12% higher at 27.11 after gaining $0.11 (0.41%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 27.02, the ETF confirmed its breakout through the previous session high after trading up to $0.22 above it intraday.
Daily Candlestick Chart (EWG as at Jun 30, 2020):
Tuesday's trading range has been $0.43 (1.6%), that's slightly below the last trading month's daily average range of $0.53. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for EWG. Prices continued to consolidate within a tight trading range between 26.49 and 27.24 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could accelerate should prices move below the close-by swing low at 26.49 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for EWG. Out of 258 times, EWG closed higher 57.75% 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 55.43% with an average market move of 0.10%.