IJR closes lower for the 2nd day in a row
iShares Core S&P Small-Cap ETF (IJR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, IJR ended the month 4.28% higher at 71.21 after losing $0.46 (-0.64%) today on high volume. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (IJR as at Jul 31, 2020):
Friday's trading range has been $1.76 (2.46%), that's above the last trading month's daily average range of $1.41. 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 IJR.
One bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on May 29th, IJR actually gained 1.10% on the following trading day.
Prices are trading close to the key technical resistance level at 72.23 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 72.23 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 69.65 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for IJR. Out of 105 times, IJR closed higher 55.24% 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 eight trading days, showing a win rate of 58.10% with an average market move of 0.42%.