HYG closes within prior day's range after lackluster session
iShares iBoxx $ High Yield Corporate Bond (HYG) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
HYG ended Monday at 85.21 edging higher $0.04 (0.05%). 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 (HYG as at Aug 10, 2020):
Monday's trading range has been $0.29 (0.34%), that's below the last trading month's daily average range of $0.38. 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. Prices continued to consolidate within a tight trading range between 85.01 and 85.40 where it has been caught now for the last three trading days.
Prices are trading close to the key technical resistance level at 85.40 (R1). After having been unable to move lower than 85.05 in the previous session, the market found buyers again around the same price level today at 85.01. The last time this happened on August 7th, HYG gained 0.05% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 85.40 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 84.80 where further sell stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for iShares iBoxx. Out of 527 times, HYG closed higher 54.08% of the time on the next trading day after the market condition occurred.