IJH plunges, losing $4.52 (-2.42%) within a single day
iShares Core S&P Mid-Cap ETF (IJH) Technical Analysis Report for Sep 21, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, IJH ended Monday at 182.24 tanking $4.52 (-2.42%). This is the biggest single-day loss in over two weeks. Today's close at 182.24 marks the lowest recorded closing price since July 20th. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (IJH as at Sep 21, 2020):
Monday's trading range has been $3.18 (1.74%), that's slightly above the last trading month's daily average range of $3.17. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IJH.
One bullish candlestick pattern matches today's price action, the Takuri Line. The last time a Takuri Line showed up on March 10th, IJH actually lost -6.73% on the following trading day.
After trading as low as 179.95 during the day, the ETF found support at the 200-day moving average at 181.72. Prices are trading close to the key technical resistance level at 184.92 (R1).
Crossing below the lower Bollinger Band for the first time since September 10th, prices have shown unusually strong downward momentum in the short-term. This might either indicate a potential selling climax after which prices could head back up towards the mean of the Bollinger Bands at 190.09 or signal the beginning of a strong momentum breakout leading to even lower prices.
Although the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Its common bullish interpretation has been confirmed for IJH. Out of 40 times, IJH closed higher 65.00% 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 67.50% with an average market move of 0.79%.