IWB rises to highest close since December 3, 2018
iShares Russell 1000 ETF (IWB) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, IWB finished Wednesday at 153.16 gaining $0.45 (0.29%). Today's close at 153.16 marks the highest recorded closing price since December 3, 2018. Trading $0.43 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on February 6th, IWB lost -0.92% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (IWB as at Feb 13, 2019):
Wednesday's trading range has been $0.74 (0.48%), that's far below the last trading month's daily average range of $1.38. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for IWB.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 152.89 (S1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Trading close to December's high at 155.95 we might see further upside momentum if potential buy stops at the level get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for IWB. Out of 318 times, IWB closed higher 55.03% 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 66.67% with an average market move of 0.86%.