IVW closes above its opening price after recovering from early selling pressure
iShares S&P 500 Growth ETF (IVW) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
IVW ended the week 3.27% higher at 196.09 after gaining $0.84 (0.43%) today ahead of tomorrow's Memorial Day market holiday. Trading up to $0.78 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (IVW as at May 22, 2020):
Friday's trading range has been $1.76 (0.9%), that's below the last trading month's daily average range of $3.04. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for IVW. Prices continued to consolidate within a tight trading range between 193.17 and 197.69 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
After having been unable to move lower than 194.75 in the prior session, the market found buyers again around the same price level today at 194.41. The last time this happened on Tuesday, IVW gained 1.84% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 197.69 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for IVW. Out of 416 times, IVW closed higher 60.34% 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 63.22% with an average market move of 0.46%.