IJH runs into sellers again around 210.02
iShares Core S&P Mid-Cap ETF (IJH) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
IJH ended the week 2.32% higher at 209.55 after edging lower $0.08 (-0.04%) today ahead of tomorrow's Presidents' Day market holiday. 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 (IJH as at Feb 14, 2020):
Friday's trading range has been $1.28 (0.61%), that's below the last trading month's daily average range of $1.95. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IJH. Prices continued to consolidate within a tight trading range between 207.50 and 210.02 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns.
After trading down to 208.74 earlier during the day, the market bounced off the key technical support level at 208.83 (S1). The failure to close below the support could increase that levels significance as support going forward. After having been unable to move above 209.93 in the previous session, the ETF ran into sellers again around the same price level today, failing to move higher than 210.02. The last time this happened on February 3rd, IJH actually gained 1.34% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 207.50 where further sell stops could get triggered. With prices trading close to this year's high at 210.26, upside momentum might speed up should IJH be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for IJH. Out of 405 times, IJH closed higher 64.20% 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 61.23% with an average market move of 0.54%.