EWI closes higher for the 5th day in a row
iShares MSCI Italy Capped ETF (EWI) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, EWI ended Thursday at 21.60 gaining $0.73 (3.5%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 21.10, the ETF confirmed its breakout through the previous session high after trading up to $0.58 above it intraday.
Daily Candlestick Chart (EWI as at Mar 26, 2020):
Thursday's trading range has been $0.97 (4.66%), that's slightly below the last trading month's daily average range of $1.01. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EWI.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 17th, EWI actually lost -2.18% on the following trading day.
Although the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for EWI. Out of 542 times, EWI closed lower 53.51% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 48.52% with an average market move of -0.30%.