IWC closes within previous day's range after lackluster session
iShares Micro-Cap ETF (IWC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, IWC finished the week 1.65% higher at 98.58 after losing $0.27 (-0.27%) today ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (IWC as at Feb 14, 2020):
Friday's trading range has been $0.68 (0.69%), that's below the last trading month's daily average range of $1.01. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IWC.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
After trading down to 98.33 earlier during the day, the ETF bounced off the key technical support level at 98.55 (S1). The failure to close below the support could increase that levels significance as support going forward. The market ran into sellers again today around 99.01 for the third trading day in a row after having found sellers at 99.05 in the previous session and at 99.09 two days ago. The last time this happened on December 2, 2019, IWC lost -0.17% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 99.09 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 98.32 where further sell stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for IWC. Out of 393 times, IWC closed higher 61.83% 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 57.76% with an average market move of 0.67%.