IJK closes lower for the 2nd day in a row
iShares S&P Mid-Cap 400 Growth ETF (IJK) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, IJK ended the month 6.2% higher at 237.90 after losing $0.86 (-0.36%) today. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (IJK as at Jul 31, 2020):
Friday's trading range has been $4.13 (1.73%), that's slightly above the last trading month's daily average range of $3.49. 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 IJK. Prices continued to consolidate within a tight trading range between 233.70 and 239.39 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Hanging Man.
The market ran into sellers again today around 238.81 for the third trading day in a row after having found sellers at 239.13 in the prior session and at 239.39 two days ago. The last time this happened on July 10th, IJK lost -1.48% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 239.39 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 233.70 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for IJK. Out of 284 times, IJK closed higher 59.15% 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 60.92% with an average market move of 0.54%.