IWV finds buyers again around 170.21
iShares Russell 3000 ETF (IWV) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
IWV ended the week 3.6% higher at 171.44 after edging higher $0.45 (0.26%) today ahead of tomorrow's Memorial Day market holiday. Trading up to $0.71 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 failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (IWV as at May 22, 2020):
Friday's trading range has been $1.40 (0.82%), that's far below the last trading month's daily average range of $2.72. 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 IWV. Prices continued to consolidate within a tight trading range between 169.04 and 172.67 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical resistance level at 172.67 (R1). After having been unable to move lower than 170.31 in the previous session, the market found buyers again around the same price level today at 170.21. The last time this happened on Tuesday, IWV gained 1.79% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 172.67 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 169.04 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for IWV. Out of 410 times, IWV closed higher 60.00% 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 61.95% with an average market move of 0.45%.