HEZU still stuck within tight trading range
iShares Currency Hedged MSCI Eurozone (HEZU) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
HEZU finished the month 4.65% higher at 28.14 after flat today. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (HEZU as at Jun 30, 2020):
Tuesday's trading range has been $0.39 (1.4%), that's slightly below the last trading month's daily average range of $0.44. 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 HEZU. Prices continued to consolidate within a tight trading range between 27.58 and 28.27 where it has been caught now for the whole last trading week.
Three candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and two bearish patterns, the Bearish Hikkake Pattern and the Last Engulfing Top Pattern.
After spiking up to 28.26 during the day, iShares Currency found resistance at the 20-day moving average at 28.21. The last time this happened on March 31st, HEZU lost -4.11% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 28.27 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 27.58 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 "Bearish Bounce off SMA 20" stand out. Its common bearish interpretation has been confirmed for iShares Currency. Out of 12 times, HEZU closed lower 75.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after five trading days, showing a win rate of 50.00% with an average market move of -0.37%.