IWB stuck within tight trading range
iShares Russell 1000 ETF (IWB) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
IWB finished the week 1.71% higher at 187.50 after gaining $0.33 (0.18%) today ahead of tomorrow's Presidents' Day market holiday. Today's close at 187.50 marks the highest recorded closing price ever. Trading up to $0.65 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (IWB as at Feb 14, 2020):
Friday's trading range has been $0.81 (0.43%), that's below the last trading month's daily average range of $1.49. 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 IWB. Prices continued to consolidate within a tight trading range between 186.37 and 187.76 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Bullish Spinning Top showed up on January 27th, IWB gained 1.03% on the following trading day.
Prices are trading close to the key technical resistance level at 187.76 (R1). After having been unable to move above 187.76 in the prior session, the ETF ran into sellers again around the same price level today, missing to move higher than 187.61.
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 close-by swing high at 187.76 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 186.37 where further sell stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for IWB. Out of 201 times, IWB closed higher 61.19% 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 65.17% with an average market move of 0.51%.