IEV closes within prior day's range
iShares Europe (IEV) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
IEV finished the month 2.85% higher at 40.40 after losing $0.09 (-0.22%) today on high volume. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (IEV as at Jun 30, 2020):
Tuesday's trading range has been $0.60 (1.49%), that's slightly below the last trading month's daily average range of $0.68. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for IEV. Prices continued to consolidate within a tight trading range between 39.91 and 40.78 where it has been caught now for the whole last trading week.
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.
IShares Europe ran into sellers again today around 40.68 for the third trading day in a row after having found sellers at 40.56 in the previous session and at 40.63 two days ago. The last time this happened on March 31st, IEV lost -4.67% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could speed up should prices move below the close-by swing low at 39.91 where further sell stops might get activated. As prices are trading close to June's low at 39.12, downside momentum could accelerate should the ETF mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for iShares Europe. Out of 66 times, IEV closed higher 54.55% 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 four trading days, showing a win rate of 62.12% with an average market move of 0.07%.