HEWJ finds buyers again around 30.65
iShares Currency Hedged MSCI Japan (HEWJ) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
HEWJ finished the month 0.33% higher at 30.72 after losing $0.19 (-0.61%) today. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (HEWJ as at Jun 30, 2020):
Tuesday's trading range has been $0.21 (0.68%), that's below the last trading month's daily average range of $0.32. 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 HEWJ.
One bullish candlestick pattern matches today's price action, the Tweezer Bottom. The last time a Tweezer Bottom showed up on April 25, 2019, HEWJ gained 0.80% on the following trading day.
After having been unable to move lower than 30.65 in the previous session, iShares Currency found buyers again around the same price level today at 30.65.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the close-by swing high at 31.09 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 30.63 where further sell stops might get activated. As prices are trading close to June's low at 30.01, downside momentum could accelerate should the ETF mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for iShares Currency. Out of 398 times, HEWJ closed higher 54.77% of the time on the next trading day after the market condition occurred.