IEF closes higher for the 2nd day in a row
iShares 7-10 Year Treasury Bond ETF (IEF) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, IEF ended the week 0.04% higher at 113.30 after gaining $0.28 (0.25%) today ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.06 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on February 7th, IEF gained 0.19% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (IEF as at Feb 14, 2020):
Friday's trading range has been $0.16 (0.14%), that's far below the last trading month's daily average range of $0.28. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IEF.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Although the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the nearby swing high at 113.62 where further buy stops might get triggered. With prices trading close to this year's high at 114.12, upside momentum could speed up should IEF be able to break out to new highs for the year. As prices are trading close to February's high at 113.84, upside momentum might accelerate should the ETF mark new highs for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for IEF. Out of 180 times, IEF closed higher 60.00% 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 58.33% with an average market move of 0.19%.