EWW finds buyers again around 31.36
iShares MSCI Mexico Capped ETF (EWW) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
EWW ended the month -0.03% lower at 31.88 after edging lower $0.06 (-0.19%) today. Trading up to $0.30 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (EWW as at Jun 30, 2020):
Tuesday's trading range has been $0.64 (2.02%), that's below the last trading month's daily average range of $0.88. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EWW.
After having been unable to move lower than 31.35 in the previous session, the ETF found buyers again around the same price level today at 31.36. The last time this happened on June 17th, EWW actually lost -2.55% on the following trading day.
EWW shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the nearby swing low at 31.35 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for EWW. Out of 684 times, EWW closed higher 52.78% 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 51.75% with an average market move of 0.21%.