EZU runs into sellers around 36.66 for the forth day in a row
iShares MSCI Eurozone (EZU) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
EZU ended the month 4.89% higher at 36.48 after edging lower $0.03 (-0.08%) today. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (EZU as at Jun 30, 2020):
Tuesday's trading range has been $0.56 (1.55%), that's slightly below the last trading month's daily average range of $0.69. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for EZU. Prices continued to consolidate within a tight trading range between 35.86 and 36.67 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 25th, EZU actually lost -1.80% on the following trading day.
Prices are trading close to the key technical resistance level at 36.98 (R1). The ETF was sold again around 36.66 after having seen highs at 36.60, 36.55 and 36.67 in the last three trading sessions. Obviously there is something going on at that level.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could speed up should prices move below the nearby swing low at 35.86 where further sell stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for iShares MSCI. Out of 65 times, EZU closed higher 53.85% 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 four trading days, showing a win rate of 58.46% with an average market move of 0.34%.