EWT runs into sellers around 40.30 for the forth day in a row
iShares Inc MSCI Taiwan (EWT) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
EWT ended the month 8.18% higher at 40.22 after losing $0.01 (-0.02%) today. Trading up to $0.15 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (EWT as at Jun 30, 2020):
Tuesday's trading range has been $0.26 (0.65%), that's far below the last trading month's daily average range of $0.42. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for EWT. Prices continued to consolidate within a tight trading range between 39.79 and 40.31 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bullish Spinning Top showed up on May 11th, EWT actually lost -0.80% on the following trading day.
The ETF was sold again around 40.30 after having seen highs at 40.27, 40.28 and 40.23 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 39.79 where further sell stops could get triggered. As prices are trading close to June's high at 40.62, upside momentum might accelerate should iShares mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior three Highs" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for iShares. Out of 5 times, EWT closed higher 80.00% 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 60.00% with an average market move of 0.21%.