EWQ dominated by bulls lifting the market higher throughout the day
iShares MSCI France ETF (EWQ) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EWQ finished Tuesday at 28.64 gaining $0.17 (0.6%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 28.47, the ETF confirmed its breakout through the previous session high after trading up to $0.19 above it intraday.
Daily Candlestick Chart (EWQ as at Aug 04, 2020):
Tuesday's trading range has been $0.43 (1.52%), that's slightly 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.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
The market managed to close back above the 200-day moving average at 28.49. When this moving average was crossed above the last time on July 15th, EWQ actually lost -0.55% on the following trading day.
Though 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.
Buying could speed up should prices move above the nearby swing high at 29.08 where further buy stops might get triggered. 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 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 200" stand out. Its common bullish interpretation has been confirmed for EWQ. Out of 43 times, EWQ closed higher 55.81% 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 62.79% with an average market move of -0.27%.