IEI closes within prior day's range
iShares 3-7 Year Treasury Bond ETF (IEI) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
IEI finished the month 0.02% higher at 133.67 after losing $0.05 (-0.04%) today. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (IEI as at Jun 30, 2020):
Tuesday's trading range has been $0.20 (0.15%), that's slightly above the last trading month's daily average range of $0.17. 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 higher than usual for IEI.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on May 15th, IEI lost -0.25% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Black Candle and the Dark Cloud Cover which are both known as bearish patterns.
After having been unable to move lower than 133.64 in the previous session, the ETF found buyers again around the same price level today at 133.62.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for iShares 3-7. Out of 536 times, IEI closed higher 54.10% 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 54.85% with an average market move of 0.08%.