IJK misses to close above 20-day moving average
iShares S&P Mid-Cap 400 Growth ETF (IJK) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, IJK ended Wednesday at 241.42 gaining $0.10 (0.04%). Trading $1.87 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (IJK as at Sep 16, 2020):
Wednesday's trading range has been $3.08 (1.27%), that's slightly below the last trading month's daily average range of $3.32. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IJK.
Prices are trading close to the key technical support level at 239.09 (S1). After spiking up to 244.26 during the day, the ETF found resistance at the 20-day moving average at 242.92. After having been unable to move lower than 240.69 in the previous session, IJK found buyers again around the same price level today at 241.18. The last time this happened on September 8th, IJK gained 1.70% on the following trading day.
While 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 five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for IJK. Out of 279 times, IJK closed higher 59.50% 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 62.01% with an average market move of 0.33%.