EWW pushes through Wednesday's high
iShares MSCI Mexico Capped ETF (EWW) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EWW ended Thursday at 30.35 gaining $1.44 (4.98%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 29.60, the ETF confirmed its breakout through the previous session high after trading up to $1.21 above it intraday.
Daily Candlestick Chart (EWW as at Mar 26, 2020):
Thursday's trading range has been $1.81 (6.24%), that's slightly below the last trading month's daily average range of $1.89. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for EWW.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 29.21 (now S1), which is likely to act as support going forward. The last time this happened on March 17th, EWW actually lost -8.41% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for EWW. Out of 163 times, EWW closed lower 52.76% 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 50.92% with an average market move of -0.72%.