EWP closes within prior day's range
iShares MSCI Spain Capped ETF (EWP) Technical Analysis Report for Oct 14, 2020 | by Techniquant Editorial Team
EWP ended Wednesday at 22.53 gaining $0.13 (0.58%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (EWP as at Oct 14, 2020):
Wednesday's trading range has been $0.23 (1.01%), that's slightly 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 lower than usual for EWP.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical resistance level at 22.62 (R1).
The ETF shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could speed up should prices move above the nearby swing high at 22.85 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 22.37 where further sell stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for EWP. Out of 522 times, EWP closed higher 56.51% 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 four trading days, showing a win rate of 53.07% with an average market move of 0.18%.