EWQ finds support at 20-day moving average
iShares MSCI France ETF (EWQ) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
EWQ finished the week 4.55% higher at 24.12 after edging higher $0.02 (0.08%) today ahead of tomorrow's Memorial Day market holiday. Trading up to $0.14 lower after the open, the market 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 failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (EWQ as at May 22, 2020):
Friday's trading range has been $0.21 (0.87%), that's far below the last trading month's daily average range of $0.37. 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.
One bearish candlestick pattern matches today's price action, the Hanging Man.
After trading as low as 23.94 during the day, the ETF found support at the 20-day moving average at 23.94. The last time this happened on April 16th, EWQ gained 4.33% on the following trading day.
EWQ shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 24.45 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 23.82 where further sell stops could get triggered. Further buying might move prices higher should the market test April's nearby high at 25.04.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for EWQ. Out of 627 times, EWQ closed higher 56.62% 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 55.82% with an average market move of 0.26%.