EWW closes within previous day's range
iShares MSCI Mexico Capped ETF (EWW) Technical Analysis Report for Jul 16, 2019 | by Techniquant Editorial Team
EWW finished Tuesday at 43.65 losing $0.42 (-0.95%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EWW as at Jul 16, 2019):
Tuesday's trading range has been $0.67 (1.53%), that's slightly above the last trading month's daily average range of $0.66. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below 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 Bearish Spinning Top. The last time a Bearish Spinning Top showed up on July 1st, EWW actually gained 0.07% on the following trading day.
Prices are trading close to the key technical support level at 43.28 (S1). The ETF closed back below the 20-day moving average at 43.85.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 44.17 where further buy stops might get activated. Further selling could move prices lower should the market test June's close-by low at 42.52.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for EWW. Out of 360 times, EWW closed lower 56.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 51.39% with an average market move of -0.43%.