IWC breaks back above 200-day moving average
iShares Micro-Cap ETF (IWC) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, IWC finished the month 5.53% higher at 87.27 after gaining $0.88 (1.02%) today. Closing above Monday's high at 86.96, the market confirmed its breakout through the previous session high after trading up to $0.60 above it intraday.
Daily Candlestick Chart (IWC as at Jun 30, 2020):
Tuesday's trading range has been $1.79 (2.08%), that's below the last trading month's daily average range of $2.41. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for IWC.
One bullish candlestick pattern matches today's price action, the White Candle.
The ETF managed to close back above the 200-day moving average at 86.58 for the first time since June 23rd. When this moving average was crossed above the last time on June 23rd, IWC actually lost -2.21% on the following trading day. Prices are trading close to the key technical resistance level at 87.99 (R1).
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 87.99 where further buy 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 "Bullish Break through SMA 200" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for IWC. Out of 33 times, IWC closed lower 60.61% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 54.55% with an average market move of -0.23%.