EWQ dominated by bulls lifting the market higher throughout the day
iShares MSCI France ETF (EWQ) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EWQ finished Thursday at 24.64 gaining $1.23 (5.25%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 23.84, the ETF confirmed its breakout through the prior session high after trading up to $0.80 above it intraday.
Daily Candlestick Chart (EWQ as at Mar 26, 2020):
Thursday's trading range has been $1.22 (5.2%), that's slightly above the last trading month's daily average range of $1.08. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for EWQ.
Two candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 23.90 (now S1), which is likely to act as support going forward. The last time this happened on January 28th, EWQ gained 0.31% on the following trading day.
Although the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for EWQ. Out of 162 times, EWQ closed higher 59.88% 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 58.64% with an average market move of 0.17%.