IVE closes above its opening price after recovering from early selling pressure
iShares S&P 500 Value ETF (IVE) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
IVE ended the week 3.28% higher at 105.26 after flat today ahead of tomorrow's Memorial Day market holiday. Trading up to $0.77 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 15th, IVE gained 4.06% on the following trading day. 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 (IVE as at May 22, 2020):
Friday's trading range has been $0.94 (0.89%), that's far below the last trading month's daily average range of $1.79. 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 IVE.
One bearish candlestick pattern matches today's price action, the Hanging Man.
After trading as low as 104.38 during the day, the ETF found support at the 20-day moving average at 104.45. Prices are trading close to the key technical resistance level at 105.93 (R1).
IVE 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 106.41 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 104.29 where further sell stops might get activated. Further buying could move prices higher should the market test April's nearby high at 109.60.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for IVE. Out of 99 times, IVE closed higher 54.55% 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 65.66% with an average market move of 0.38%.