IBB finds buyers at key support level
iShares Nasdaq Biotechnology Index Fund (IBB) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
IBB ended the month 1.45% higher at 136.69 after gaining $2.01 (1.49%) today. Closing above Monday's high at 136.13, iShares Nasdaq confirmed its breakout through the prior session high after trading up to $1.04 above it intraday.
Daily Candlestick Chart (IBB as at Jun 30, 2020):
Tuesday's trading range has been $3.02 (2.24%), that's slightly below the last trading month's daily average range of $3.22. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for IBB.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 25th, IBB actually lost -2.00% on the following trading day.
After trading down to 134.15 earlier during the day, the ETF bounced off the key technical support level at 134.18 (S1). The failure to close below the support might increase that levels importance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 138.15 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 133.57 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for iShares Nasdaq. Out of 475 times, IBB closed higher 59.79% 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 10 trading days, showing a win rate of 61.26% with an average market move of 0.78%.