EWH closes higher for the 4th day in a row
iShares MSCI Hong Kong ETF (EWH) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, EWH ended Wednesday at 25.30 gaining $0.32 (1.28%) on high volume. Today's close at 25.30 marks the highest recorded closing price since June 18, 2018. Trading $0.07 higher after the open, the ETF was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (EWH as at Feb 13, 2019):
Wednesday's trading range has been $0.20 (0.79%), that's slightly above the last trading month's daily average range of $0.20. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for EWH.
Two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Bearish Spinning Top which are both known as bearish patterns. The last time a Bearish Hikkake Pattern showed up on November 7, 2018, EWH lost -2.25% on the following trading day.
Prices are trading close to the key technical support level at 25.09 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for EWH. Out of 355 times, EWH closed higher 51.83% 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 60.85% with an average market move of 1.00%.