IJJ closes within prior day's range after lackluster session
iShares S&P Mid-Cap 400 Value ETF (IJJ) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
IJJ ended the week 8.59% higher at 126.14 after edging lower $0.34 (-0.27%) 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 (IJJ as at May 22, 2020):
Friday's trading range has been $1.80 (1.42%), that's far below the last trading month's daily average range of $3.51. 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 IJJ. Prices continued to consolidate within a tight trading range between 124.52 and 127.04 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.
Prices are trading close to the key technical resistance level at 127.04 (R1). After having been unable to move lower than 125.32 in the previous session, the ETF found buyers again around the same price level today at 124.83. The last time this happened on May 11th, IJJ actually lost -3.99% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the nearby swing high at 127.04 where further buy stops could get activated. Further buying might move prices higher should the market test April's close-by high at 130.58.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for IJJ. Out of 418 times, IJJ closed higher 56.94% 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 56.70% with an average market move of 0.48%.