EWW dominated by bears dragging the market lower throughout the day
iShares MSCI Mexico Capped ETF (EWW) Technical Analysis Report for Oct 13, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EWW ended Tuesday at 35.09 losing $0.47 (-1.32%). The bears were in full control today, moving the market lower throughout the whole session.
Daily Candlestick Chart (EWW as at Oct 13, 2020):
Tuesday's trading range has been $0.53 (1.49%), that's below the last trading month's daily average range of $0.76. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EWW.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Bullish Hikkake Pattern showed up on September 3rd, EWW gained 0.88% on the following trading day.
After trading as low as 34.96 during the day, the market found support at the 200-day moving average at 35.07.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 200" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for EWW. Out of 18 times, EWW closed lower 55.56% 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 66.67% with an average market move of -1.29%.