EWU slumps, losing $0.54 (-2.04%) within a single day on high volume


iShares MSCI United Kingdom ETF (EWU) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team

Highlights

EWU crashes, losing $0.54 (-2.04%) within a single day on high volume
EWU breaks below 50-day moving average for the first time since July 13th
EWU dominated by bears dragging the market lower throughout the day
EWU closes lower for the 2nd day in a row
EWU breaks below Thursday's low

Overview

Moving lower for the 2nd day in a row, EWU finished the month 0.66% higher at 25.93 after tanking $0.54 (-2.04%) today on high volume. This is the biggest single-day loss in over a month. The last time we've seen such an unusually strong single-day loss on June 11th, EWU actually gained 2.14% on the following trading day. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 25.95, the ETF confirmed its breakout through the previous session low after trading up to $0.22 below it intraday.

Daily Candlestick Chart (EWU as at Jul 31, 2020):

Daily technical analysis candlestick chart for iShares MSCI United Kingdom ETF (EWU) as at Jul 31, 2020

Friday's trading range has been $0.69 (2.61%), that's far above the last trading month's daily average range of $0.33. 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 EWU.

One bearish candlestick pattern matches today's price action, the Black Candle.

The market closed below the 50-day moving average at 26.30 for the first time since July 13th.

EWU shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.

Further selling could move prices lower should the market test June's nearby low at 25.26.

Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 50" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for EWU. Out of 95 times, EWU closed higher 60.00% 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 0.29%.


Market Conditions for EWU as at Jul 31, 2020

Loading Market Conditions for EWU (iShares MSCI United Kingdom ETF)...
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