IEF dominated by bulls lifting the market higher throughout the day
iShares 7-10 Year Treasury Bond ETF (IEF) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
IEF finished Monday at 122.02 gaining $0.13 (0.11%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (IEF as at Jul 13, 2020):
Monday's trading range has been $0.36 (0.3%), that's slightly above the last trading month's daily average range of $0.34. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IEF.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on July 9th, IEF actually lost -0.20% on the following trading day.
Prices are trading close to the key technical support level at 121.74 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 122.29 where further buy stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for IEF. Out of 755 times, IEF closed higher 55.23% 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 53.51% with an average market move of 0.07%.