EWW breaks below Friday's low
iShares MSCI Mexico Capped ETF (EWW) Technical Analysis Report for Oct 19, 2020 | by Techniquant Editorial Team
EWW finished Monday at 34.81 losing $0.45 (-1.28%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Friday's low at 35.01, the ETF confirmed its breakout through the prior session low after trading up to $0.25 below it intraday.
Daily Candlestick Chart (EWW as at Oct 19, 2020):
Monday's trading range has been $0.71 (2.01%), that's slightly below the last trading month's daily average range of $0.76. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EWW.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 34.58 (S1). The market closed back below the 200-day moving average at 34.86 for the first time since October 7th. When this moving average was crossed below the last time on March 5th, EWW lost -3.68% on the following trading day. After having been unable to move above 35.57 in the previous session, EWW ran into sellers again around the same price level today, missing to move higher than 35.47.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 35.57 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 34.58 where further sell stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 200" stand out. Its common bearish interpretation has been confirmed for EWW. Out of 42 times, EWW closed lower 69.05% 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 -2.22%.