EWZ dominated by bears dragging the market lower throughout the day
iShares MSCI Brazil Capped ETF (EWZ) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EWZ ended the month 13.14% higher at 32.54 after losing $0.85 (-2.55%) today on high volume. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 32.79, EWZ ETF confirmed its breakout through the prior session low after trading up to $0.48 below it intraday.
Daily Candlestick Chart (EWZ as at Jul 31, 2020):
Friday's trading range has been $0.87 (2.62%), that's slightly above the last trading month's daily average range of $0.78. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EWZ.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on July 23rd, EWZ actually gained 0.34% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might speed up should prices move below the nearby swing low at 31.56 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for EWZ ETF. Out of 293 times, EWZ closed higher 54.27% of the time on the next trading day after the market condition occurred.