EWI breaks back above 20-day moving average
iShares MSCI Italy Capped ETF (EWI) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EWI finished Tuesday at 25.54 gaining $0.37 (1.47%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 25.18, the market confirmed its breakout through the previous session high after trading up to $0.36 above it intraday.
Daily Candlestick Chart (EWI as at Aug 04, 2020):
Tuesday's trading range has been $0.45 (1.79%), that's above the last trading month's daily average range of $0.35. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EWI.
Five candlestick patterns are matching today's price action, the Bullish Belt-hold, the Bullish Closing Marubozu, the Bullish Marubozu and the White Candle which are known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bullish Belt-hold showed up on May 18th, EWI actually lost -3.19% on the following trading day.
The ETF managed to close back above the 20-day moving average at 25.46 for the first time since July 29th. Prices are trading close to the key technical resistance level at 25.59 (R1).
Although EWI is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Marubozu" stand out. Its common bullish interpretation has been confirmed for EWI. Out of 9 times, EWI closed higher 55.56% 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 66.67% with an average market move of 0.61%.