IOO still stuck within tight trading range
iShares Global 100 ETF (IOO) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
IOO ended the month 4.49% higher at 55.15 after gaining $0.27 (0.49%) today. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (IOO as at Jul 31, 2020):
Friday's trading range has been $0.91 (1.64%), that's above the last trading month's daily average range of $0.70. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for IOO. Prices continued to consolidate within a tight trading range between 54.03 and 55.32 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Takuri Line. The last time a Takuri Line showed up on March 10th, IOO actually lost -4.60% on the following trading day.
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 56.67, upside momentum could speed up should the market be able to break out to new highs for the year. As prices are trading close to July's high at 56.25, upside momentum might accelerate should the ETF mark new highs for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Its common bullish interpretation has been confirmed for IOO. Out of 47 times, IOO closed higher 59.57% 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 63.83% with an average market move of 0.40%.