EWQ runs into sellers again around 29.00
iShares MSCI France ETF (EWQ) Technical Analysis Report for Jul 23, 2020 | by Techniquant Editorial Team
EWQ ended Thursday at 28.70 losing $0.31 (-1.07%). Closing below Wednesday's low at 28.86, the market confirmed its breakout through the previous session low after trading up to $0.24 below it intraday.
Daily Candlestick Chart (EWQ as at Jul 23, 2020):
Thursday's trading range has been $0.38 (1.32%), that's slightly below the last trading month's daily average range of $0.40. 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.
After having been unable to move above 29.05 in the prior session, the ETF ran into sellers again around the same price level today, missing to move higher than 29.00. The last time this happened on July 14th, EWQ actually gained 1.66% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 29.14 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 28.55 where further sell stops might get triggered. Further buying could move prices higher should the market test June's nearby high at 29.23.
Among the four 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 632 times, EWQ closed higher 56.80% 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 56.17% with an average market move of 0.35%.