EWG runs into sellers around 30.53 for the third day in a row
iShares MSCI Germany ETF (EWG) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
EWG finished Wednesday at 30.28 losing $0.12 (-0.39%) on low volume. Closing below Tuesday's low at 30.31, the ETF confirmed its breakout through the prior session low after trading up to $0.09 below it intraday.
Daily Candlestick Chart (EWG as at Sep 16, 2020):
Wednesday's trading range has been $0.31 (1.02%), that's slightly below the last trading month's daily average range of $0.41. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EWG.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 30.01 (S1). The market ran into sellers again today around 30.53 for the third trading day in a row after having found sellers at 30.55 in the previous session and at 30.50 two days ago. The last time this happened on March 31st, EWG lost -5.12% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 30.55 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 30.08 where further sell stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for EWG. Out of 296 times, EWG closed higher 56.76% 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 59.12% with an average market move of 0.55%.