EWH closes -0.39% lower at 22.74
iShares MSCI Hong Kong ETF (EWH) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
EWH finished Wednesday at 22.74 edging lower $0.09 (-0.39%).
Daily Candlestick Chart (EWH as at Sep 16, 2020):
Wednesday's trading range has been $0.11 (0.48%), that's far below the last trading month's daily average range of $0.18. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EWH.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on July 17th, EWH lost -0.09% on the following trading day.
Prices are trading close to the key technical support level at 22.56 (S1).
While the ETF is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 22.96 where further buy stops might get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for EWH. Out of 61 times, EWH closed higher 50.82% 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 59.02% with an average market move of 0.60%.