EWJ rises to highest close since February 11th
iShares MSCI Japan ETF (EWJ) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, EWJ ended Wednesday at 59.45 gaining $0.21 (0.35%). Today's close at 59.45 marks the highest recorded closing price since February 11th. 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 Sep 16, 2020):
Wednesday's trading range has been $0.30 (0.51%), that's below the last trading month's daily average range of $0.43. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EWJ.
One bearish candlestick pattern matches today's price action, the Shooting Star. The last time a Shooting Star showed up on July 28th, EWJ actually gained 0.05% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 58.20.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 60.07, upside momentum could accelerate should the ETF be able to break out to new highs for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for EWJ. Out of 15 times, EWJ closed higher 53.33% 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 60.00% with an average market move of 0.80%.