IOO dominated by bears dragging the market lower throughout the day
iShares Global 100 ETF (IOO) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
IOO finished Wednesday at 56.96 losing $0.43 (-0.75%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 57.21, the market confirmed its breakout through the prior session low after trading up to $0.28 below it intraday.
Daily Candlestick Chart (IOO as at Sep 16, 2020):
Wednesday's trading range has been $0.66 (1.15%), that's slightly below the last trading month's daily average range of $0.83. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IOO.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 56.17 (S1).
While the ETF is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the nearby swing high at 57.83 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 56.20 where further sell stops could get triggered. Further selling might move prices lower should the market test August's nearby low at 55.66.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for IOO. Out of 374 times, IOO closed higher 62.03% 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 64.97% with an average market move of 0.66%.