EWQ closes within prior day's range
iShares MSCI France ETF (EWQ) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
EWQ ended the week 15.49% higher at 23.64 after losing $1.00 (-4.06%) today. Trading up to $0.36 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EWQ as at Mar 27, 2020):
Friday's trading range has been $0.95 (4.06%), that's slightly below the last trading month's daily average range of $1.09. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for EWQ.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Unable to break through the key technical resistance level at 23.90 (R1), the market closed below it after spiking up to 24.00 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on February 21st, EWQ lost -4.18% on the following trading day.
Though EWQ is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 24.64 where further buy stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for EWQ. Out of 179 times, EWQ closed higher 54.19% 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 three trading days, showing a win rate of 55.31% with an average market move of -0.02%.