ITA closes within previous day's range after lackluster session
iShares U.S. Aerospace & Defense (ITA) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
ITA ended the month 0.1% higher at 164.72 after losing $2.52 (-1.51%) today. 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 (ITA as at Jun 30, 2020):
Tuesday's trading range has been $2.84 (1.72%), that's far below the last trading month's daily average range of $5.61. 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 ITA.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving higher in the prior session, the ETF closed lower but above the previous day's open today, forming a bearish Harami Candle. The last time this candlestick pattern showed up on May 11th, ITA lost -2.35% on the following trading day.
Prices are trading close to the key technical resistance level at 166.20 (R1).
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 accelerate should prices move above the nearby swing high at 167.24 where further buy stops might get activated.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for iShares U. S.. Out of 724 times, ITA closed higher 53.45% 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 62.98% with an average market move of 0.63%.