IJH closes within prior day's range after lackluster session
iShares Core S&P Mid-Cap ETF (IJH) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
IJH finished the week 7.36% higher at 169.30 after edging lower $0.12 (-0.07%) today ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (IJH as at May 22, 2020):
Friday's trading range has been $2.12 (1.25%), that's far below the last trading month's daily average range of $4.08. 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 IJH. Prices continued to consolidate within a tight trading range between 163.70 and 170.07 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns. The last time a Bearish Spinning Top showed up on April 21st, IJH actually gained 1.37% on the following trading day.
Prices are trading close to the key technical support level at 167.56 (S1). The ETF found buyers again today around 167.64 for the third trading day in a row after having found demand at 167.42 in the prior session and at 167.69 two days ago.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 170.07 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 167.42 where further sell stops could get activated. Further buying might move prices higher should the market test April's nearby high at 170.69.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous two Lows" stand out. Its common bullish interpretation has been confirmed for IJH. Out of 74 times, IJH closed higher 64.86% 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 58.11% with an average market move of 0.40%.