IEF finds buyers again around 121.89
iShares 7-10 Year Treasury Bond ETF (IEF) Technical Analysis Report for Sep 22, 2020 | by Techniquant Editorial Team
IEF ended Tuesday at 121.92 flat. 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 (IEF as at Sep 22, 2020):
Tuesday's trading range has been $0.14 (0.11%), that's far below the last trading month's daily average range of $0.32. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IEF.
Three candlestick patterns are matching today's price action, the Northern Doji and the Shooting Star which are both known as bearish patterns and one neutral pattern, the Doji. The last time a Shooting Star showed up on September 3rd, IEF lost -0.56% on the following trading day.
Prices are trading close to the key technical support level at 121.71 (S1). After having been unable to move lower than 121.90 in the previous session, the ETF found buyers again around the same price level today at 121.89.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could accelerate should prices move above the close-by swing high at 122.15 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 121.70 where further sell stops might get triggered. As prices are trading close to September's high at 122.39, upside momentum could accelerate should IEF mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for IEF. Out of 120 times, IEF closed higher 52.50% 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 64.17% with an average market move of 0.22%.