EWQ closes lower for the 2nd day in a row
iShares MSCI France ETF (EWQ) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EWQ finished the week 0.19% higher at 32.29 after losing $0.06 (-0.19%) today ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (EWQ as at Feb 14, 2020):
Friday's trading range has been $0.15 (0.46%), that's slightly 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 higher than usual for EWQ.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 32.10 (S1). After having been unable to move above 32.41 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 32.38. The last time this happened on January 13th, EWQ actually gained 0.06% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 32.19 where further sell stops could get activated.
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 EWQ. Out of 620 times, EWQ closed higher 56.61% 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 55.97% with an average market move of 0.29%.