EWJ closes higher for the 3rd day in a row
iShares MSCI Japan ETF (EWJ) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EWJ ended Wednesday at 53.84 gaining $0.13 (0.24%).
Daily Candlestick Chart (EWJ as at Feb 13, 2019):
Wednesday's trading range has been $0.27 (0.5%), that's below the last trading month's daily average range of $0.36. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for EWJ.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on January 29th, EWJ actually gained 1.12% on the following trading day.
Prices are trading close to the key technical resistance level at 54.23 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 54.53 where further buy stops could get activated.
Among the five 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. Though it is usually interpreted as bearish, it has actually shown to be bullish for EWJ. Out of 392 times, EWJ closed higher 61.73% 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 60.46% with an average market move of 0.68%.