IJS closes below its opening price unable to hold early session gains
iShares S&P Small-Cap 600 Value ETF (IJS) Technical Analysis Report for Sep 13, 2019 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, IJS finished the week 6.57% higher at 154.61 after edging higher $0.53 (0.34%) today. Today's close at 154.61 marks the highest recorded closing price since May 6th. Trading $1.39 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (IJS as at Sep 13, 2019):
Friday's trading range has been $1.92 (1.24%), that's slightly below the last trading month's daily average range of $2.21. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for IJS.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Shooting Star which are both known as bearish patterns. The last time a Bearish Spinning Top showed up on July 31st, IJS lost -1.97% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 144.79.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 158.11, upside momentum could speed up should the ETF be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for IJS. Out of 33 times, IJS closed higher 57.58% 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 69.70% with an average market move of 0.92%.