HYG pops to highest close since June 20th
iShares iBoxx $ High Yield Corporate Bond (HYG) Technical Analysis Report for Sep 16, 2019 | by Techniquant Editorial Team
HYG ended Monday at 87.47 gaining $0.31 (0.36%). Today's close at 87.47 marks the highest recorded closing price since June 20th. Trading up to $0.12 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Friday's high at 87.31, the ETF confirmed its breakout through the previous session high after trading up to $0.17 above it intraday.
Daily Candlestick Chart (HYG as at Sep 16, 2019):
Monday's trading range has been $0.30 (0.34%), that's slightly above the last trading month's daily average range of $0.28. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for HYG.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on September 5th, HYG gained 0.09% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 87.65, upside momentum might speed up should iShares iBoxx be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for iShares iBoxx. Out of 400 times, HYG closed higher 54.50% 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 three trading days, showing a win rate of 53.75% with an average market move of 0.02%.