IEF closes higher for the 4th day in a row
iShares 7-10 Year Treasury Bond ETF (IEF) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, IEF finished the month 0.76% higher at 122.80 after edging higher $0.03 (0.02%) today. Today's close at 122.80 marks the highest recorded closing price ever. Closing above Thursday's high at 122.78, the ETF confirmed its breakout through the prior session high after trading up to $0.11 above it intraday.
Daily Candlestick Chart (IEF as at Jul 31, 2020):
Friday's trading range has been $0.31 (0.25%), that's above the last trading month's daily average range of $0.26. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IEF.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a White Candle showed up on Wednesday, IEF gained 0.14% on the following trading day.
Prices are trading close to the key technical support level at 122.69 (S1).
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 122.17.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 123.41, upside momentum could accelerate should the market be able to break out to new highs for the year.
Among the six 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 IEF. Out of 324 times, IEF closed higher 51.23% of the time on the next trading day after the market condition occurred.