HYG breaks back above 100-day moving average
iShares iBoxx $ High Yield Corporate Bond (HYG) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
HYG finished the month -0.97% lower at 81.62 after gaining $0.74 (0.91%) today. Closing above Monday's high at 81.45, the market confirmed its breakout through the previous session high after trading up to $0.35 above it intraday.
Daily Candlestick Chart (HYG as at Jun 30, 2020):
Tuesday's trading range has been $0.72 (0.89%), that's slightly below the last trading month's daily average range of $0.76. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HYG.
One bullish candlestick pattern matches today's price action, the White Candle.
IShares iBoxx managed to close back above the 100-day moving average at 81.14.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 82.91. The last time this happened on March 23rd, HYG gained 4.12% on the following trading day.
The ETF shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the five 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 395 times, HYG closed higher 54.94% 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 54.43% with an average market move of 0.09%.