IWC closes above its opening price after recovering from early selling pressure
iShares Micro-Cap ETF (IWC) Technical Analysis Report for Sep 18, 2020 | by Techniquant Editorial Team
IWC finished the week 5.0% higher at 94.76 after gaining $0.68 (0.72%) today. Trading up to $0.71 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on September 2nd, IWC actually lost -2.90% on the following trading day. Closing above Thursday's high at 94.33, the market confirmed its breakout through the prior session high after trading up to $0.61 above it intraday.
Daily Candlestick Chart (IWC as at Sep 18, 2020):
Friday's trading range has been $1.41 (1.5%), that's slightly below the last trading month's daily average range of $1.60. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IWC.
Prices are trading close to the key technical resistance level at 95.30 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 95.38 where further buy stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Although 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 60.41% with an average market move of 0.42%.