EWP closes above its opening price after recovering from early selling pressure
iShares MSCI Spain Capped ETF (EWP) Technical Analysis Report for Oct 16, 2020 | by Techniquant Editorial Team
EWP ended the week -2.32% lower at 22.33 after gaining $0.06 (0.27%) today. Trading up to $0.08 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on September 24th, EWP actually lost -0.23% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (EWP as at Oct 16, 2020):
Friday's trading range has been $0.22 (0.99%), that's slightly 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.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical support level at 22.11 (S1).
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling might speed up should prices move below the nearby swing low at 22.11 where further sell stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for EWP. Out of 660 times, EWP closed higher 53.64% 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 52.58% with an average market move of 0.28%.