IJJ closes within prior day's range
iShares S&P Mid-Cap 400 Value ETF (IJJ) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
IJJ ended Wednesday at 140.62 gaining $0.94 (0.67%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (IJJ as at Sep 16, 2020):
Wednesday's trading range has been $2.36 (1.68%), that's slightly above the last trading month's daily average range of $2.25. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IJJ.
Buyers managed to take out the key technical resistance level at 140.28 (now S1), which is likely to act as support going forward. After spiking up to 142.33 during the day, the ETF found resistance at the 200-day moving average at 141.35. The last time this happened on June 5th, IJJ actually gained 2.71% on the following trading day.
While the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Further selling might move prices lower should the market test August's close-by low at 136.36.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for IJJ. Out of 36 times, IJJ closed higher 55.56% 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 69.44% with an average market move of 0.84%.