EWQ closes higher for the 4th day in a row
iShares MSCI France ETF (EWQ) Technical Analysis Report for Jul 22, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, EWQ ended Wednesday at 29.01 edging higher $0.06 (0.21%). Today's close at 29.01 marks the highest recorded closing price since June 8th. Trading up to $0.11 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, EWQ gained 0.35% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (EWQ as at Jul 22, 2020):
Wednesday's trading range has been $0.19 (0.66%), that's far below the last trading month's daily average range of $0.41. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EWQ. Prices continued to consolidate within a tight trading range between 28.55 and 29.14 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical resistance level at 29.14 (R1). After having been unable to move lower than 28.89 in the previous session, the market found buyers again around the same price level today at 28.86.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 29.14 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 28.55 where further sell stops could get triggered. Further buying might move prices higher should the market test June's close-by high at 29.23.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for EWQ. Out of 631 times, EWQ closed higher 56.89% 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 56.10% with an average market move of 0.35%.