IVE finds support at 20-day moving average
iShares S&P 500 Value ETF (IVE) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, IVE ended the month 3.73% higher at 112.25 after losing $0.29 (-0.26%) today. Trading up to $1.46 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (IVE as at Jul 31, 2020):
Friday's trading range has been $1.55 (1.38%), that's slightly above the last trading month's daily average range of $1.37. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IVE.
Three candlestick patterns are matching today's price action, the Dragonfly Doji and the Southern Doji which are both known as bullish patterns and one neutral pattern, the Doji. The last time a Southern Doji showed up on March 19th, IVE actually lost -4.36% on the following trading day.
After trading as low as 110.76 during the day, the ETF found support at the 20-day moving average at 111.26.
Although IVE 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 accelerate should prices move above the nearby swing high at 113.99 where further buy stops could get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for IVE. Out of 377 times, IVE closed higher 59.68% 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 64.19% with an average market move of 0.55%.