EWP finds buyers again around 23.00
iShares MSCI Spain Capped ETF (EWP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
EWP finished Wednesday at 23.04 losing $0.08 (-0.35%). Trading $0.18 higher after the open, the ETF was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Tuesday's low at 23.05, the market confirmed its breakout through the prior session low after trading up to $0.05 below it intraday.
Daily Candlestick Chart (EWP as at Sep 16, 2020):
Wednesday's trading range has been $0.27 (1.17%), that's slightly below the last trading month's daily average range of $0.30. 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 EWP.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Shooting Star.
EWP closed back below the 20-day moving average at 23.10. When this moving average was crossed below the last time on August 31st, EWP lost -0.48% on the following trading day. After having been unable to move lower than 23.05 in the previous session, the ETF found buyers again around the same price level today at 23.00.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 23.30 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 22.68 where further sell stops might get triggered. As prices are trading close to September's high at 23.48, upside momentum could speed up should the market mark new highs for the month.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for EWP. Out of 349 times, EWP closed higher 55.59% of the time on the next trading day after the market condition occurred.