IVW closes higher for the 3rd day in a row
iShares S&P 500 Growth ETF (IVW) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, IVW ended the month 7.13% higher at 222.28 after gaining $3.36 (1.53%) today. Today's close at 222.28 marks the highest recorded closing price ever. Trading up to $3.53 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (IVW as at Jul 31, 2020):
Friday's trading range has been $3.88 (1.75%), that's slightly above the last trading month's daily average range of $3.56. 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 lower than usual for IVW.
Two candlestick patterns are matching today's price action, the Bullish Closing Marubozu which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Bullish Closing Marubozu showed up on March 10th, IVW actually lost -4.88% on the following trading day.
Prices are trading close to the key technical resistance level at 222.32 (R1).
Crossing above the upper Bollinger Band for the first time since July 6th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 217.12 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 222.32, upside momentum might accelerate should the market be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for IVW. Out of 75 times, IVW closed higher 56.00% 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 74.67% with an average market move of 0.41%.