IWB pushes through Wednesday's high
iShares Russell 1000 ETF (IWB) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, IWB finished Thursday at 143.95 gaining $8.16 (6.01%) on low volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 141.06, the ETF confirmed its breakout through the prior session high after trading up to $3.46 above it intraday.
Daily Candlestick Chart (IWB as at Mar 26, 2020):
Thursday's trading range has been $7.52 (5.49%), that's slightly below the last trading month's daily average range of $8.04. 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 higher than usual for IWB.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, IWB gained 0.85% on the following trading day.
Prices are trading close to the key technical resistance level at 149.64 (R1).
Though the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for IWB. Out of 324 times, IWB closed higher 55.25% 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 62.65% with an average market move of 0.27%.