EWL finds buyers again around 38.76
iShares Inc MSCI Switzerland (EWL) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EWL finished the month 1.7% higher at 38.96 after gaining $0.09 (0.23%) today.
Daily Candlestick Chart (EWL as at Jun 30, 2020):
Tuesday's trading range has been $0.35 (0.9%), that's below the last trading month's daily average range of $0.52. 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 EWL. Prices continued to consolidate within a tight trading range between 38.49 and 39.26 where it has been caught now for the whole last trading week.
Despite a weak opening the ETF managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 23rd, EWL lost -2.08% on the following trading day.
Prices are trading close to the key technical resistance level at 39.17 (R1). After having been unable to move lower than 38.74 in the prior session, the market found buyers again around the same price level today at 38.76.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might speed up should prices move below the close-by swing low at 38.49 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for iShares. Out of 36 times, EWL closed higher 52.78% 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 63.89% with an average market move of 0.71%.