EWW closes below its opening price unable to hold early session gains
iShares MSCI Mexico Capped ETF (EWW) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
EWW finished Wednesday at 34.33 gaining $0.21 (0.62%). Trading $0.29 higher after the open, the ETF was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on September 8th, EWW actually gained 2.31% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EWW as at Sep 16, 2020):
Wednesday's trading range has been $0.57 (1.66%), that's slightly below the last trading month's daily average range of $0.64. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EWW. Prices continued to consolidate within a tight trading range between 33.92 and 34.72 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical resistance level at 34.77 (R1). After having been unable to move lower than 34.08 in the previous session, the market found buyers again around the same price level today at 34.15.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further buying might move prices higher should the market test August's nearby high at 35.06.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for EWW. Out of 501 times, EWW closed higher 50.90% 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 two trading days, showing a win rate of 52.30% with an average market move of 0.08%.