IJS runs into sellers around 112.36 for the third day in a row
iShares S&P Small-Cap 600 Value ETF (IJS) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, IJS ended the week 8.99% higher at 112.07 after edging higher $0.17 (0.15%) today on low volume ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (IJS as at May 22, 2020):
Friday's trading range has been $1.98 (1.76%), that's far below the last trading month's daily average range of $3.65. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IJS. Prices continued to consolidate within a tight trading range between 107.33 and 112.93 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Hanging Man.
The ETF ran into sellers again today around 112.36 for the third trading day in a row after having found sellers at 112.93 in the previous session and at 112.35 two days ago. The last time this happened on April 14th, IJS lost -4.83% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the nearby swing high at 112.93 where further buy stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for IJS. Out of 82 times, IJS closed higher 59.76% 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 50.00% with an average market move of 0.48%.