IWN dominated by bulls lifting the market higher throughout the day
iShares Russell 2000 Value (IWN) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, IWN ended the month 2.38% higher at 97.46 after gaining $1.16 (1.2%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 96.66, the ETF confirmed its breakout through the previous session high after trading up to $1.11 above it intraday.
Daily Candlestick Chart (IWN as at Jun 30, 2020):
Tuesday's trading range has been $2.20 (2.29%), that's below the last trading month's daily average range of $3.21. 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 IWN.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on June 8th, IWN actually lost -2.53% on the following trading day.
Prices are trading close to the key technical resistance level at 98.28 (R1).
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 nearby swing high at 98.28 where further buy stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for iShares Russell. Out of 315 times, IWN closed higher 55.24% 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 57.46% with an average market move of 0.43%.