EWU dominated by bulls lifting the market higher throughout the day
iShares MSCI United Kingdom ETF (EWU) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EWU finished Thursday at 24.26 gaining $1.42 (6.22%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 23.32, the ETF confirmed its breakout through the prior session high after trading up to $1.01 above it intraday.
Daily Candlestick Chart (EWU as at Mar 26, 2020):
Thursday's trading range has been $1.25 (5.42%), that's above the last trading month's daily average range of $1.08. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EWU.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, EWU gained 4.15% on the following trading day.
Buyers managed to take out the key technical resistance level at 24.06 (now S1), which is likely to act as support going forward.
Although the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for EWU. Out of 269 times, EWU closed higher 54.28% 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 seven trading days, showing a win rate of 56.13% with an average market move of 0.04%.