EWI dominated by bulls lifting the market higher throughout the day
iShares MSCI Italy Capped ETF (EWI) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
EWI ended the month 7.21% higher at 24.08 after losing $0.10 (-0.41%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (EWI as at Jun 30, 2020):
Tuesday's trading range has been $0.28 (1.17%), that's below the last trading month's daily average range of $0.47. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for EWI. Prices continued to consolidate within a tight trading range between 23.59 and 24.29 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on June 25th, EWI actually lost -1.91% on the following trading day.
Unable to break through the key technical resistance level at 24.09 (R1), the ETF closed below it after spiking up to 24.12 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 24.26 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 23.59 where further sell stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for EWI. Out of 310 times, EWI closed lower 60.65% 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 55.81% with an average market move of -1.02%.