EWU closes lower for the 2nd day in a row
iShares MSCI United Kingdom ETF (EWU) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EWU ended the week 3.48% higher at 25.01 after losing $0.16 (-0.64%) today ahead of tomorrow's Memorial Day market holiday. Trading up to $0.10 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 15th, EWU gained 4.59% on the following trading day.
Daily Candlestick Chart (EWU as at May 22, 2020):
Friday's trading range has been $0.26 (1.04%), that's far below the last trading month's daily average range of $0.38. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EWU.
The ETF shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the close-by swing high at 25.52 where further buy stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Down" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for EWU. Out of 328 times, EWU closed higher 55.18% 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 eight trading days, showing a win rate of 56.40% with an average market move of 0.20%.