EWW closes within previous day's range
iShares MSCI Mexico Capped ETF (EWW) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
EWW finished the week -1.34% lower at 43.51 after losing $0.05 (-0.11%) today. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (EWW as at Jul 12, 2019):
Friday's trading range has been $0.66 (1.5%), that's slightly above the last trading month's daily average range of $0.65. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EWW.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 43.11 (S1). Prices are trading close to the key technical resistance level at 43.82 (R1). After having been unable to move lower than 43.10 in the prior session, the ETF found buyers again around the same price level today at 43.21. The last time this happened on Wednesday, EWW gained 0.93% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 42.79 where further sell stops might get activated. Trading close to May's low at 42.14 we could see further downside momentum if potential sell stops at the level get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for EWW. Out of 570 times, EWW closed higher 52.11% 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 53.16% with an average market move of 0.30%.