EWP closes above its opening price after recovering from early selling pressure
iShares MSCI Spain Capped ETF (EWP) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
EWP ended the week -0.1% lower at 29.09 after edging lower $0.02 (-0.07%) today. Trading up to $0.04 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (EWP as at Jul 12, 2019):
Friday's trading range has been $0.09 (0.31%), that's far below the last trading month's daily average range of $0.15. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EWP. Prices continued to consolidate within a tight trading range between 28.91 and 29.11 where it has been caught now for the last three trading days.
Prices are trading close to the key technical support level at 28.95 (S1). The market ran into sellers again today around 29.10 for the third trading day in a row after having found sellers at 29.11 in the prior session and at 29.08 two days ago. The last time this happened on November 19, 2018, EWP lost -2.14% on the following trading day.
EWP shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could accelerate should prices move above the close-by swing high at 29.11 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. Its common bearish interpretation has been confirmed for EWP. Out of 58 times, EWP closed lower 55.17% of the time on the next trading day after the market condition occurred.