EWQ closes lower for the 3rd day in a row
iShares MSCI France ETF (EWQ) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, EWQ ended the week -0.86% lower at 30.05 after losing $0.22 (-0.73%) today on low volume. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (EWQ as at Jun 14, 2019):
Friday's trading range has been $0.08 (0.27%), that's far below the last trading month's daily average range of $0.19. 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 EWQ.
After trading down to 30.00 earlier during the day, the market bounced off the key technical support level at 30.03 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on June 3rd, EWQ gained 1.27% on the following trading day. The ETF closed back below the 50-day moving average at 30.09 for the first time since June 6th.
EWQ shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for EWQ. Out of 143 times, EWQ closed higher 60.14% 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 54.55% with an average market move of 0.44%.