EWQ closes within previous day's range
iShares MSCI France ETF (EWQ) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
EWQ finished Monday at 27.87 edging lower $0.06 (-0.21%). 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 Jul 13, 2020):
Monday's trading range has been $0.64 (2.27%), that's above the last trading month's daily average range of $0.48. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for EWQ.
Two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Black Candle which are both known as bearish patterns. The last time a Black Candle showed up on July 9th, EWQ actually gained 1.31% on the following trading day.
Though 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 27.38 where further sell stops might get activated. As prices are trading close to July's low at 27.25, downside momentum could speed up should the market mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for EWQ. Out of 341 times, EWQ closed higher 57.18% 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 57.77% with an average market move of 0.26%.