EWZ pushes through Wednesday's high
iShares MSCI Brazil Capped ETF (EWZ) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EWZ finished Thursday at 26.18 gaining $1.14 (4.55%). Trading up to $0.67 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on March 17th, EWZ actually lost -15.45% on the following trading day. Closing above Wednesday's high at 25.85, the ETF confirmed its breakout through the prior session high after trading up to $0.61 above it intraday.
Daily Candlestick Chart (EWZ as at Mar 26, 2020):
Thursday's trading range has been $1.30 (5.03%), that's below the last trading month's daily average range of $2.29. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for EWZ.
While EWZ ETF is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for EWZ ETF. Out of 438 times, EWZ closed lower 49.77% 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 52.51% with an average market move of -0.18%.