IJT closes above its opening price after recovering from early selling pressure
iShares S&P Small-Cap 600 Growth ETF (IJT) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
IJT finished the week 8.63% higher at 158.67 after gaining $1.10 (0.7%) today on low volume ahead of tomorrow's Memorial Day market holiday. Today's close at 158.67 marks the highest recorded closing price since April 29th. Trading up to $1.14 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 158.63, the market confirmed its breakout through the prior session high after trading up to $0.04 above it intraday.
Daily Candlestick Chart (IJT as at May 22, 2020):
Friday's trading range has been $2.06 (1.31%), that's far below the last trading month's daily average range of $4.31. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IJT.
IJT ran into sellers again today around 158.67 for the third trading day in a row after having found sellers at 158.63 in the previous session and at 158.60 two days ago. The last time this happened on March 31st, IJT lost -6.83% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying might move prices higher should the market test April's close-by high at 163.19.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for IJT. Out of 566 times, IJT closed higher 55.65% 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 60.42% with an average market move of 0.60%.