EWP breaks back below 100-day moving average
iShares MSCI Spain Capped ETF (EWP) Technical Analysis Report for Oct 12, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EWP finished Monday at 22.85 edging lower $0.01 (-0.04%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (EWP as at Oct 12, 2020):
Monday's trading range has been $0.11 (0.48%), that's far below the last trading month's daily average range of $0.28. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EWP. Prices continued to consolidate within a tight trading range between 22.76 and 22.92 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
The market closed back below the 100-day moving average at 22.88. When this moving average was crossed below the last time on September 21st, EWP lost -1.68% on the following trading day. The ETF found buyers again today around 22.76 for the third trading day in a row after having found demand at 22.76 in the prior session and at 22.77 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for EWP. Out of 304 times, EWP closed higher 55.26% of the time on the next trading day after the market condition occurred.