IJK pops to highest close since March 6th
iShares S&P Mid-Cap 400 Growth ETF (IJK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, IJK finished the week 6.44% higher at 214.14 after edging higher $0.10 (0.05%) today ahead of tomorrow's Memorial Day market holiday. Today's close at 214.14 marks the highest recorded closing price since March 6th. Trading up to $1.66 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (IJK as at May 22, 2020):
Friday's trading range has been $2.16 (1.01%), that's far below the last trading month's daily average range of $4.51. 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 IJK. Prices continued to consolidate within a tight trading range between 207.67 and 214.66 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on February 20th, IJK lost -1.06% on the following trading day.
Prices are trading close to the key technical support level at 211.08 (S1). The market ran into sellers again today around 214.21 for the third trading day in a row after having found sellers at 214.45 in the previous session and at 214.66 two days ago.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 214.66 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 211.44 where further sell stops might get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for IJK. Out of 569 times, IJK closed higher 57.12% 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 63.80% with an average market move of 0.78%.