IHI dominated by bulls lifting the market higher throughout the day
iShares U.S. Medical Devices (IHI) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, IHI ended the month -1.39% lower at 264.77 after gaining $6.44 (2.49%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 258.40, the ETF confirmed its breakout through the previous session high after trading up to $7.40 above it intraday.
Daily Candlestick Chart (IHI as at Jun 30, 2020):
Tuesday's trading range has been $7.74 (3.0%), that's above the last trading month's daily average range of $5.68. 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 IHI.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
IShares U. S. managed to close back above the 50-day moving average at 260.76 for the first time since June 23rd. When this moving average was crossed above the last time on June 12th, IHI gained 1.28% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
As prices are trading close to June's high at 272.25, upside momentum could accelerate should the market mark new highs for the month.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for iShares U. S.. Out of 112 times, IHI closed higher 63.39% 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 66.07% with an average market move of 0.80%.