IJS finds support at 100-day moving average
iShares S&P Small-Cap 600 Value ETF (IJS) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
IJS ended the week 1.35% higher at 155.75 after losing $0.80 (-0.51%) today ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (IJS as at Feb 14, 2020):
Friday's trading range has been $1.47 (0.94%), that's slightly below the last trading month's daily average range of $1.77. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IJS. Prices continued to consolidate within a tight trading range between 155.19 and 156.72 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Black Candle and the Dark Cloud Cover which are both known as bearish patterns. The last time a Dark Cloud Cover showed up on September 21, 2018, IJS lost -0.81% on the following trading day.
After trading as low as 155.19 during the day, the ETF found support at the 100-day moving average at 155.47. Prices are trading close to the key technical resistance level at 157.09 (R1). The market ran into sellers again today around 156.66 for the third trading day in a row after having found sellers at 156.64 in the prior session and at 156.72 two days ago.
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 156.72 where further buy stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for IJS. Out of 555 times, IJS closed higher 54.59% 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 55.32% with an average market move of 0.33%.