EWI closes below its opening price unable to hold early session gains
iShares MSCI Italy Capped ETF (EWI) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
EWI ended Wednesday at 25.64 losing $0.25 (-0.97%). Trading $0.16 higher after the open, the ETF was unable to hold its gains as the bears took control ending the day below its opening price. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (EWI as at Sep 16, 2020):
Wednesday's trading range has been $0.25 (0.97%), that's below the last trading month's daily average range of $0.34. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EWI.
The market closed back below the 50-day moving average at 25.66. When this moving average was crossed below the last time on Monday, EWI actually gained 1.09% on the following trading day.
While 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.
Buying might speed up should prices move above the close-by swing high at 26.01 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 25.48 where further sell stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for EWI. Out of 474 times, EWI closed higher 57.17% 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 55.06% with an average market move of 0.18%.