EWU breaks back above 50-day moving average
iShares MSCI United Kingdom ETF (EWU) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, EWU ended Wednesday at 26.53 gaining $0.13 (0.49%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (EWU as at Sep 16, 2020):
Wednesday's trading range has been $0.27 (1.02%), that's slightly below the last trading month's daily average range of $0.33. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EWU.
Two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji.
The ETF managed to close back above the 50-day moving average at 26.51 for the first time since September 2nd. When this moving average was crossed above the last time on September 2nd, EWU actually lost -2.83% on the following trading day. Unable to break through the key technical resistance level at 26.59 (R1), the market closed below it after spiking up to 26.72 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to September's high at 26.85, upside momentum might accelerate should EWU 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 "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for EWU. Out of 77 times, EWU closed higher 54.55% 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 57.14% with an average market move of 0.02%.