EWQ closes within previous day's range
iShares MSCI France ETF (EWQ) Technical Analysis Report for Aug 03, 2020 | by Techniquant Editorial Team
EWQ finished Monday at 28.47 surging $0.52 (1.86%). This is the biggest single-day gain in over four weeks. The last time we've seen such an unusually strong single-day gain on July 29th, EWQ actually lost -1.48% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. 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 Aug 03, 2020):
Monday's trading range has been $0.34 (1.2%), that's slightly below the last trading month's daily average range of $0.37. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EWQ.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving lower in the prior session, the market managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 28.55 (R1).
While the ETF is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Trading close to June's high at 29.23 we could see further upside momentum if potential buy stops at the level get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for EWQ. Out of 21 times, EWQ closed higher 71.43% 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 47.62% with an average market move of 0.52%.