IJH still stuck within tight trading range
iShares Core S&P Mid-Cap ETF (IJH) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, IJH finished the month 4.56% higher at 185.93 after losing $1.37 (-0.73%) today on high volume. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (IJH as at Jul 31, 2020):
Friday's trading range has been $3.89 (2.08%), that's above the last trading month's daily average range of $3.03. 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 lower than usual for IJH. Prices continued to consolidate within a tight trading range between 183.21 and 188.87 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical resistance level at 188.31 (R1). After having been unable to move above 187.57 in the prior session, the ETF ran into sellers again around the same price level today, failing to move higher than 187.10. The last time this happened on Tuesday, IJH actually gained 2.22% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 188.87 where further buy stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for IJH. Out of 551 times, IJH closed higher 56.44% 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 57.89% with an average market move of 0.46%.