IJR finds buyers around 62.83 for the third day in a row
iShares Core S&P Small-Cap ETF (IJR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, IJR finished the week 8.77% higher at 63.76 after edging higher $0.26 (0.41%) today on low volume ahead of tomorrow's Memorial Day market holiday. Today's close at 63.76 marks the highest recorded closing price since April 29th. Trading up to $0.81 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (IJR as at May 22, 2020):
Friday's trading range has been $1.05 (1.65%), that's far below the last trading month's daily average range of $1.93. 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 IJR. Prices continued to consolidate within a tight trading range between 60.95 and 64.03 where it has been caught now for the whole last trading week.
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, two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Hanging Man showed up on February 12th, IJR actually gained 0.33% on the following trading day.
Prices are trading close to the key technical resistance level at 64.03 (R1). The ETF found buyers again today around 62.83 for the third trading day in a row after having found demand at 62.80 in the prior session and at 62.54 two days ago.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 64.03 where further buy stops could get triggered. Further buying might move prices higher should the market test April's close-by high at 66.68.
Among the 11 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 461 times, IJR closed higher 54.01% 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 59.22% with an average market move of 0.55%.