EWP pushes through key technical resistance level
iShares MSCI Spain Capped ETF (EWP) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, EWP ended Thursday at 21.46 gaining $0.97 (4.73%) on low volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 20.95, the market confirmed its breakout through the previous session high after trading up to $0.55 above it intraday.
Daily Candlestick Chart (EWP as at Mar 26, 2020):
Thursday's trading range has been $0.80 (3.86%), that's slightly below the last trading month's daily average range of $0.96. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for EWP.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 20.96 (now S1), which is likely to act as support going forward. The last time this happened on Tuesday, EWP gained 3.85% on the following trading day.
Though the ETF is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for EWP. Out of 78 times, EWP closed higher 57.69% 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 eight trading days, showing a win rate of 60.26% with an average market move of 0.30%.