EWI closes within prior day's range after lackluster session
iShares MSCI Italy Capped ETF (EWI) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
EWI finished the week 0.3% higher at 29.94 after flat today ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (EWI as at Feb 14, 2020):
Friday's trading range has been $0.13 (0.43%), that's below the last trading month's daily average range of $0.22. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EWI.
Prices are trading close to the key technical support level at 29.79 (S1). Prices are trading close to the key technical resistance level at 30.15 (R1). After having been unable to move lower than 29.85 in the previous session, the ETF found buyers again around the same price level today at 29.84. The last time this happened on Monday, EWI gained 0.54% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 30.20 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 29.79 where further sell 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 "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for EWI. Out of 770 times, EWI closed higher 49.74% 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 seven trading days, showing a win rate of 52.60% with an average market move of -0.12%.