IVW dominated by bears dragging the market lower throughout the day
iShares S&P 500 Growth ETF (IVW) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
IVW ended Wednesday at 231.00 losing $2.70 (-1.16%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 232.58, the ETF confirmed its breakout through the previous session low after trading up to $1.66 below it intraday.
Daily Candlestick Chart (IVW as at Sep 16, 2020):
Wednesday's trading range has been $3.83 (1.63%), that's slightly below the last trading month's daily average range of $4.26. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IVW.
Notwithstanding a strong opening the market closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on August 14th, IVW actually gained 0.59% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 229.66 (S1). After having been unable to move above 234.93 in the previous session, IVW ran into sellers again around the same price level today, failing to move higher than 234.75.
Although the ETF is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 234.93 where further buy stops might get triggered. Further selling could move prices lower should the market test August's close-by low at 223.41.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for IVW. Out of 438 times, IVW closed higher 60.27% 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 66.89% with an average market move of 1.02%.