ITB still stuck within tight trading range
iShares U.S. Home Construction (ITB) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
ITB finished Tuesday at 52.02 losing $0.46 (-0.88%) on low volume. Trading $0.29 higher after the open, iShares U. S. was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ITB as at Aug 04, 2020):
Tuesday's trading range has been $0.83 (1.59%), that's far below the last trading month's daily average range of $1.41. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ITB. Prices continued to consolidate within a tight trading range between 50.62 and 52.64 where it has been caught now for the whole last trading week.
After having been unable to move lower than 51.68 in the previous session, the market found buyers again around the same price level today at 51.81. The last time this happened on July 24th, ITB gained 3.88% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 50.62 where further sell stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for iShares U. S.. Out of 380 times, ITB closed higher 53.42% 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 58.68% with an average market move of 0.70%.