IWN falls to lowest close since January 4th
iShares Russell 2000 Value (IWN) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, IWN ended Thursday at 111.31 edging lower $0.45 (-0.4%). Today's close at 111.31 marks the lowest recorded closing price since January 4th. Closing below Wednesday's low at 111.54, the ETF confirmed its breakout through the previous session low after trading up to $0.78 below it intraday.
Daily Candlestick Chart (IWN as at Aug 15, 2019):
Thursday's trading range has been $1.50 (1.34%), that's below the last trading month's daily average range of $1.94. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for IWN.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical resistance level at 112.64 (R1).
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 117.31. The last time this happened on August 7th, IWN gained 2.16% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for iShares Russell. Out of 548 times, IWN closed higher 55.11% 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 52.55% with an average market move of 0.38%.