ITB closes higher for the 2nd day in a row


iShares U.S. Home Construction (ITB) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team

Highlights

ITB pushes through key technical resistance level
ITB fails to close above 20-day moving average
ITB closes higher for the 2nd day in a row
ITB pushes through Monday's high

Overview

Moving higher for the 2nd day in a row, ITB finished the month 2.08% higher at 44.15 after gaining $0.72 (1.66%) today on low volume. Closing above Monday's high at 43.69, the market confirmed its breakout through the previous session high after trading up to $0.71 above it intraday.

Daily Candlestick Chart (ITB as at Jun 30, 2020):

Daily technical analysis candlestick chart for iShares U.S. Home Construction (ITB) as at Jun 30, 2020

Tuesday's trading range has been $1.24 (2.86%), that's below the last trading month's daily average range of $1.63. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ITB.

One bullish candlestick pattern matches today's price action, the White Candle.

Buyers managed to take out the key technical resistance level at 44.06 (now S1), which is likely to act as support going forward. After spiking up to 44.40 during the day, iShares U. S. found resistance at the 20-day moving average at 44.18. The last time this happened on April 6th, ITB actually gained 1.77% on the following trading day.

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 might speed up should prices move above the nearby swing high at 44.91 where further buy stops could get triggered.

Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for iShares U. S.. Out of 268 times, ITB closed higher 54.48% 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 57.84% with an average market move of 0.52%.


Market Conditions for ITB as at Jun 30, 2020

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