EWW finds support at 20-day moving average
iShares MSCI Mexico Capped ETF (EWW) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EWW ended the month 2.04% higher at 32.53 after losing $0.39 (-1.18%) today. Closing below Thursday's low at 32.74, the ETF confirmed its breakout through the previous session low after trading up to $0.59 below it intraday.
Daily Candlestick Chart (EWW as at Jul 31, 2020):
Friday's trading range has been $0.85 (2.58%), that's far above the last trading month's daily average range of $0.62. 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 Black Candle.
After trading as low as 32.15 during the day, the market found support at the 20-day moving average at 32.33. The last time this happened on May 1st, EWW gained 4.27% on the following trading day. EWW closed back below the 50-day moving average at 32.61 for the first time since July 20th.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for EWW. Out of 411 times, EWW closed higher 51.82% 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 six trading days, showing a win rate of 56.20% with an average market move of 0.23%.