IWV climbs to highest close ever
iShares Russell 3000 ETF (IWV) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
IWV finished the week 1.79% higher at 197.61 after gaining $0.29 (0.15%) today ahead of tomorrow's Presidents' Day market holiday. Today's close at 197.61 marks the highest recorded closing price ever. Trading up to $0.66 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (IWV as at Feb 14, 2020):
Friday's trading range has been $0.81 (0.41%), that's below the last trading month's daily average range of $1.52. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for IWV. Prices continued to consolidate within a tight trading range between 196.38 and 197.86 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Bullish Spinning Top showed up on January 27th, IWV gained 1.06% on the following trading day.
Prices are trading close to the key technical resistance level at 197.86 (R1). After having been unable to move above 197.86 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 197.70.
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 197.86 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 196.38 where further sell stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for IWV. Out of 101 times, IWV closed higher 58.42% 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 65.35% with an average market move of 0.21%.