EWQ closes below its opening price unable to hold early session gains
iShares MSCI France ETF (EWQ) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
EWQ ended Wednesday at 29.46 losing $0.20 (-0.67%). Trading $0.15 higher after the open, the ETF was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on September 11th, EWQ actually gained 0.58% on the following trading day. Closing below Tuesday's low at 29.58, the market confirmed its breakout through the prior session low after trading up to $0.14 below it intraday.
Daily Candlestick Chart (EWQ as at Sep 16, 2020):
Wednesday's trading range has been $0.31 (1.05%), that's slightly below the last trading month's daily average range of $0.39. 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.
Prices are trading close to the key technical support level at 29.14 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 29.82 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 29.09 where further sell stops could get activated. As prices are trading close to September's high at 30.02, upside momentum might accelerate should EWQ mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for EWQ. Out of 343 times, EWQ closed higher 57.14% 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 nine trading days, showing a win rate of 58.60% with an average market move of 0.31%.