EWP dominated by bulls lifting the market higher throughout the day
iShares MSCI Spain Capped ETF (EWP) Technical Analysis Report for Oct 15, 2020 | by Techniquant Editorial Team
EWP finished Thursday at 22.27 losing $0.26 (-1.15%). The bulls were in full control today, moving the market higher throughout the whole session.
Daily Candlestick Chart (EWP as at Oct 15, 2020):
Thursday's trading range has been $0.18 (0.81%), that's below the last trading month's daily average range of $0.28. 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.
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 last time a White Candle showed up on Monday, EWP actually lost -1.97% on the following trading day.
Prices are trading close to the key technical support level at 22.05 (S1).
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for EWP. Out of 107 times, EWP closed lower 58.88% 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 51.40% with an average market move of -0.11%.