FVD finds buyers again around 32.81
First Trust VL Dividend (FVD) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
FVD finished Thursday at 33.01 gaining $0.13 (0.4%). Trading up to $0.15 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (FVD as at Aug 15, 2019):
Thursday's trading range has been $0.29 (0.88%), that's slightly below the last trading month's daily average range of $0.37. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for FVD.
After moving lower in the previous session, First Trust managed to close higher but below the prior day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 32.81 earlier during the day, the market bounced off the key technical support level at 32.83 (S1). The failure to close below the support might increase that levels importance as support going forward. Prices are trading close to the key technical resistance level at 33.23 (R1). After having been unable to move lower than 32.85 in the previous session, FVD found buyers again around the same price level today at 32.81. The last time this happened on Tuesday, FVD actually lost -2.17% on the following trading day.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for First Trust. Out of 39 times, FVD closed higher 51.28% 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 66.67% with an average market move of 0.52%.