EWJ breaks above 20-day moving average for the first time since February 12th
iShares MSCI Japan ETF (EWJ) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EWJ ended Thursday at 50.24 gaining $1.60 (3.29%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 49.12, the market confirmed its breakout through the prior session high after trading up to $1.18 above it intraday.
Daily Candlestick Chart (EWJ as at Mar 26, 2020):
Thursday's trading range has been $1.31 (2.67%), that's slightly below the last trading month's daily average range of $1.57. 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 slightly higher than usual for EWJ.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 17th, EWJ actually lost -2.12% on the following trading day.
The ETF managed to close above the 20-day moving average at 48.79 for the first time since February 12th. Prices are trading close to the key technical resistance level at 51.67 (R1).
While EWJ is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for EWJ. Out of 167 times, EWJ closed higher 55.69% 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 54.49% with an average market move of 0.13%.