IWM breaks back above 20-day moving average
iShares Russell 2000 ETF (IWM) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, IWM ended the month 3.08% higher at 143.18 after gaining $2.04 (1.45%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 141.99, IWM ETF confirmed its breakout through the prior session high after trading up to $1.62 above it intraday.
Daily Candlestick Chart (IWM as at Jun 30, 2020):
Tuesday's trading range has been $3.01 (2.14%), that's below the last trading month's daily average range of $4.15. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IWM.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 25th, IWM actually lost -2.69% on the following trading day.
The ETF managed to close back above the 20-day moving average at 142.87 for the first time since June 17th.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 144.66 where further buy stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for IWM ETF. Out of 419 times, IWM closed higher 55.13% 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 57.52% with an average market move of 0.32%.