IWP breaks back above 20-day moving average
iShares Russell Midcap Growth (IWP) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, IWP finished the month 2.26% higher at 158.12 after gaining $2.69 (1.73%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 156.24, iShares Russell confirmed its breakout through the prior session high after trading up to $2.54 above it intraday.
Daily Candlestick Chart (IWP as at Jun 30, 2020):
Tuesday's trading range has been $3.42 (2.2%), that's slightly above the last trading month's daily average range of $3.27. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IWP.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close back above the 20-day moving average at 157.69 for the first time since June 23rd. When this moving average was crossed above the last time on June 15th, IWP gained 1.75% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
With prices trading close to this year's high at 163.69, upside momentum might accelerate should the ETF be able to break out to new highs for the year. As prices are trading close to June's high at 162.56, upside momentum could speed up should IWP mark new highs for the month.
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 iShares Russell. Out of 422 times, IWP closed higher 58.29% 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 61.61% with an average market move of 0.50%.