EWQ closes higher for the 2nd day in a row
iShares MSCI France ETF (EWQ) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EWQ ended the month 5.75% higher at 27.42 after edging higher $0.02 (0.07%) today. The bulls were in full control today, moving the market higher throughout the whole session. 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 Jun 30, 2020):
Tuesday's trading range has been $0.47 (1.73%), that's slightly below the last trading month's daily average range of $0.53. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for EWQ. Prices continued to consolidate within a tight trading range between 26.78 and 27.50 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on April 2nd, EWQ actually lost -3.10% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
The market was sold again around 27.50 after having seen highs at 27.49, 27.41 and 27.46 in the last three trading sessions. Obviously there is something going on at that level.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could accelerate should prices move below the close-by swing low at 26.78 where further sell stops might get activated.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for EWQ. Out of 55 times, EWQ closed higher 58.18% 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 63.64% with an average market move of 0.76%.