IVE unable to break through key resistance level
iShares S&P 500 Value ETF (IVE) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
IVE finished Wednesday at 116.11 gaining $0.81 (0.7%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (IVE as at Sep 16, 2020):
Wednesday's trading range has been $1.56 (1.35%), that's slightly above the last trading month's daily average range of $1.48. Weekly volatility is also higher, being slightly above 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 Shooting Star. The last time a Shooting Star showed up on May 26th, IVE actually gained 2.31% on the following trading day.
The market managed to close back above the 20-day moving average at 115.50. Unable to break through the key technical resistance level at 116.47 (R1), the ETF closed below it after spiking up to 117.26 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
Though 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.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for IVE. Out of 308 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 58.44% with an average market move of 0.24%.