IWC climbs to highest close since April 29th
iShares Micro-Cap ETF (IWC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, IWC finished the week 7.75% higher at 80.60 after edging higher $0.41 (0.51%) today on low volume ahead of tomorrow's Memorial Day market holiday. Today's close at 80.60 marks the highest recorded closing price since April 29th. 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 (IWC as at May 22, 2020):
Friday's trading range has been $0.97 (1.2%), that's far below the last trading month's daily average range of $2.32. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for IWC. Prices continued to consolidate within a tight trading range between 77.57 and 80.87 where it has been caught now for the whole last trading week.
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, three candlestick patterns are matching today's price action, the Hanging Man and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji.
Prices are trading close to the key technical support level at 79.58 (S1). The ETF ran into sellers again today around 80.68 for the third trading day in a row after having found sellers at 80.87 in the prior session and at 80.60 two days ago. The last time this happened on March 31st, IWC lost -6.55% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 80.87 where further buy stops might get activated. Further buying could move prices higher should the market test April's nearby high at 81.65.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for IWC. Out of 693 times, IWC closed higher 56.42% 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 55.99% with an average market move of 0.28%.