EWQ closes above its opening price after recovering from early selling pressure
iShares MSCI France ETF (EWQ) Technical Analysis Report for Jul 30, 2020 | by Techniquant Editorial Team
EWQ finished Thursday at 28.63 losing $0.43 (-1.48%). Trading up to $0.36 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 July 24th, EWQ gained 0.66% on the following trading day.
Daily Candlestick Chart (EWQ as at Jul 30, 2020):
Thursday's trading range has been $0.65 (2.29%), that's far above the last trading month's daily average range of $0.36. 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 slightly lower than usual for EWQ.
Prices are trading close to the key technical support level at 28.55 (S1).
Though the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 29.08 where further buy stops could get activated. Further buying might 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 Price Action based market condition "Gap Down" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for EWQ. Out of 361 times, EWQ closed higher 51.25% 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 57.06% with an average market move of 0.55%.