EWQ tumbles, losing $0.68 (-2.38%) within a single day on high volume
iShares MSCI France ETF (EWQ) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EWQ finished the month 1.93% higher at 27.95 after tanking $0.68 (-2.38%) today on high volume. This is the biggest single-day loss in over a month. The last time we've seen such an unusually strong single-day loss on June 11th, EWQ actually gained 2.04% on the following trading day. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 28.04, the market confirmed its breakout through the prior session low after trading up to $0.31 below it intraday.
Daily Candlestick Chart (EWQ as at Jul 31, 2020):
Friday's trading range has been $0.83 (2.91%), that's far above the last trading month's daily average range of $0.38. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EWQ.
One bearish candlestick pattern matches today's price action, the Black Candle.
The ETF closed below the 200-day moving average at 28.51 for the first time since July 14th.
While EWQ is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to July's low at 27.25, downside momentum could accelerate should the market mark new lows for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for EWQ. Out of 290 times, EWQ closed higher 62.76% 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 57.59% with an average market move of 0.46%.