EWP dominated by bears dragging the market lower throughout the day
iShares MSCI Spain Capped ETF (EWP) Technical Analysis Report for Oct 13, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, EWP ended Tuesday at 22.40 tanking $0.45 (-1.97%). This is the biggest single-day loss in over three weeks. The last time we've seen such an unusually strong single-day loss on September 21st, EWP lost -1.68% on the following trading day. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (EWP as at Oct 13, 2020):
Tuesday's trading range has been $0.29 (1.28%), that's slightly above the last trading month's daily average range of $0.28. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EWP.
Two candlestick patterns are matching today's price action, the Bearish Belt-hold and the Black Candle which are both known as bearish patterns.
The ETF closed back below the 50-day moving average at 22.82 for the first time since October 7th.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Belt-hold" stand out. Its common bearish interpretation has been confirmed for EWP. Out of 27 times, EWP closed lower 59.26% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 62.96% with an average market move of -2.13%.