IJS pushes through key technical resistance level
iShares S&P Small-Cap 600 Value ETF (IJS) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, IJS ended the month 3.13% higher at 120.37 after gaining $1.67 (1.41%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 119.42, the market confirmed its breakout through the previous session high after trading up to $1.24 above it intraday.
Daily Candlestick Chart (IJS as at Jun 30, 2020):
Tuesday's trading range has been $2.69 (2.27%), that's far below the last trading month's daily average range of $4.23. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for IJS.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on June 2nd, IJS gained 3.86% on the following trading day.
Buyers managed to take out the key technical resistance level at 119.60 (now S1), which is likely to act as support going forward.
The ETF 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 close-by swing high at 121.28 where further buy stops might get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for IJS. Out of 108 times, IJS closed higher 52.78% 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 61.11% with an average market move of 0.61%.