EWP finds buyers at key support level
iShares MSCI Spain Capped ETF (EWP) Technical Analysis Report for Sep 18, 2020 | by Techniquant Editorial Team
EWP finished the week -0.48% lower at 22.69 after tanking $0.49 (-2.11%) today.
Daily Candlestick Chart (EWP as at Sep 18, 2020):
Friday's trading range has been $0.27 (1.18%), 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.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Monday, EWP actually gained 1.14% on the following trading day.
After trading down to 22.57 earlier during the day, the market bounced off the key technical support level at 22.62 (S1). The failure to close below the support could increase that levels importance as support going forward. The ETF closed back below the 20-day moving average at 23.07.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Trading close to July's low at 22.33 we might see further downside momentum if potential sell stops at the level get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for EWP. Out of 340 times, EWP closed higher 62.35% 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 50.29% with an average market move of 0.09%.