FFTY runs into sellers again around 37.41
Innovator IBD 50 ETF (FFTY) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
FFTY ended Wednesday at 36.72 losing $0.38 (-1.02%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 36.98, the ETF confirmed its breakout through the previous session low after trading up to $0.30 below it intraday.
Daily Candlestick Chart (FFTY as at Sep 16, 2020):
Wednesday's trading range has been $0.73 (1.96%), that's slightly below the last trading month's daily average range of $0.78. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for FFTY.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. In spite of a strong opening FFTY ETF closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 36.36 (S1). The market closed back below the 50-day moving average at 37.07. When this moving average was crossed below the last time on September 8th, FFTY actually gained 3.11% on the following trading day. After having been unable to move above 37.31 in the previous session, FFTY ran into sellers again around the same price level today, missing to move higher than 37.41.
While the ETF is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for FFTY ETF. Out of 222 times, FFTY closed higher 60.36% 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 61.26% with an average market move of 0.42%.