EWJ closes below its opening price unable to hold early session gains
iShares MSCI Japan ETF (EWJ) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
EWJ finished the month -0.88% lower at 54.92 after losing $0.56 (-1.01%) today. Today's close at 54.92 marks the lowest recorded closing price since May 26th. Trading $0.31 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 17th, EWJ lost -0.18% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (EWJ as at Jun 30, 2020):
Tuesday's trading range has been $0.41 (0.75%), that's below the last trading month's daily average range of $0.65. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for EWJ.
The ETF shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
As prices are trading close to June's low at 54.07, downside momentum could speed up should EWJ mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down 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 289 times, EWJ closed higher 58.48% 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 62.98% with an average market move of 0.63%.