IWB finds buyers again around 188.90
iShares Russell 1000 ETF (IWB) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
IWB ended Wednesday at 188.99 losing $0.72 (-0.38%). Closing below Tuesday's low at 189.10, the ETF confirmed its breakout through the prior session low after trading up to $0.20 below it intraday.
Daily Candlestick Chart (IWB as at Sep 16, 2020):
Wednesday's trading range has been $2.48 (1.3%), that's slightly below the last trading month's daily average range of $2.69. 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.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. In spite of a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After spiking up to 191.38 during the day, IWB found resistance at the 20-day moving average at 190.91. The last time this happened on June 30th, IWB actually gained 0.65% on the following trading day. After having been unable to move lower than 189.10 in the prior session, the ETF found buyers again around the same price level today at 188.90.
While the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for IWB. Out of 139 times, IWB closed higher 66.19% 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 64.03% with an average market move of 0.48%.