IWC pushes through Tuesday's high
iShares Micro-Cap ETF (IWC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
IWC ended Wednesday at 94.40 gaining $1.37 (1.47%). Closing above Tuesday's high at 93.96, the market confirmed its breakout through the prior session high after trading up to $1.42 above it intraday.
Daily Candlestick Chart (IWC as at Sep 16, 2020):
Wednesday's trading range has been $2.15 (2.31%), that's above the last trading month's daily average range of $1.56. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IWC.
One bullish candlestick pattern matches today's price action, the White Candle.
The ETF managed to close above the 20-day moving average at 93.50 for the first time since August 26th. Unable to break through the key technical resistance level at 95.30 (R1), IWC closed below it after spiking up to 95.38 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on September 9th, IWC lost -0.69% on the following trading day.
Although the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for IWC. Out of 293 times, IWC closed higher 54.27% 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 60.75% with an average market move of 0.43%.