EWP dominated by bulls lifting the market higher throughout the day
iShares MSCI Spain Capped ETF (EWP) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
EWP finished the week 3.31% higher at 29.30 after surging $0.46 (1.6%) today. This is the biggest single-day gain in over four weeks. The last time we've seen such an unusually strong single-day gain on February 15th, EWP gained 0.85% on the following trading day. Today's close at 29.30 marks the highest recorded closing price since October 4, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (EWP as at Mar 15, 2019):
Friday's trading range has been $0.20 (0.69%), that's slightly below the last trading month's daily average range of $0.21. 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 EWP.
One bullish candlestick pattern matches today's price action, the White Candle.
The ETF managed to close above the 200-day moving average at 29.26 for the first time since May 15, 2018.
Crossing above the upper Bollinger Band for the first time since September 20, 2018, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 28.75 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. Its common bullish interpretation has been confirmed for EWP. Out of 94 times, EWP closed higher 63.83% 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 two trading days, showing a win rate of 59.57% with an average market move of 0.24%.