IJR finds buyers around 83.43 for the third day in a row
iShares Core S&P Small-Cap ETF (IJR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
IJR finished the week 1.63% higher at 83.68 after losing $0.45 (-0.53%) today on low volume ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (IJR as at Feb 14, 2020):
Friday's trading range has been $0.76 (0.9%), that's slightly below the last trading month's daily average range of $0.97. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IJR. Prices continued to consolidate within a tight trading range between 83.34 and 84.29 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
The market found buyers again today around 83.43 for the third trading day in a row after having found demand at 83.34 in the prior session and at 83.47 two days ago. The last time this happened on October 24, 2019, IJR gained 0.59% 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 84.29 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 83.34 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for IJR. Out of 463 times, IJR closed higher 54.64% 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 59.18% with an average market move of 0.61%.