EWW runs into sellers again around 36.28
iShares MSCI Mexico Capped ETF (EWW) Technical Analysis Report for Oct 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EWW ended Thursday at 36.21 gaining $0.22 (0.61%). Today's close at 36.21 marks the highest recorded closing price since June 8th. Trading up to $0.31 lower after the open, the ETF 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 failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (EWW as at Oct 22, 2020):
Thursday's trading range has been $0.47 (1.3%), that's below the last trading month's daily average range of $0.70. Weekly volatility is also lower, being 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 Hanging Man.
After having been unable to move above 36.25 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 36.28. The last time this happened on Monday, EWW actually gained 2.41% on the following trading day.
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 OHLC Patterns based market condition "Hanging Man" stand out. Its common bearish interpretation has been confirmed for EWW. Out of 42 times, EWW closed lower 52.38% 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 -0.87%.