EWH breaks back above 50-day moving average
iShares MSCI Hong Kong ETF (EWH) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
EWH ended the week 2.24% higher at 24.15 after gaining $0.13 (0.54%) today on low volume ahead of tomorrow's Presidents' Day market holiday. 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 14, 2020):
Friday's trading range has been $0.11 (0.46%), that's below the last trading month's daily average range of $0.20. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EWH. Prices continued to consolidate within a tight trading range between 23.98 and 24.27 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on Tuesday, EWH actually gained 1.51% on the following trading day.
The ETF managed to close back above the 50-day moving average at 24.14.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 24.27 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 23.98 where further sell stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for EWH. Out of 87 times, EWH closed higher 55.17% 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 nine trading days, showing a win rate of 60.92% with an average market move of 0.01%.