EWZ finds buyers again around 43.58
iShares MSCI Brazil Capped ETF (EWZ) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
EWZ finished the week 1.11% higher at 43.86 after edging higher $0.19 (0.44%) today on low volume ahead of tomorrow's Presidents' Day market holiday. 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 (EWZ as at Feb 14, 2020):
Friday's trading range has been $0.57 (1.29%), that's below the last trading month's daily average range of $0.75. 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 EWZ.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 43.58 earlier during the day, EWZ ETF bounced off the key technical support level at 43.79 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on Monday, EWZ gained 2.14% on the following trading day. After having been unable to move lower than 43.61 in the previous session, the ETF found buyers again around the same price level today at 43.58.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 44.67 where further buy stops might get triggered.
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 EWZ ETF. Out of 376 times, EWZ closed higher 60.90% 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 10 trading days, showing a win rate of 50.80% with an average market move of 0.48%.