IYE closes higher for the 2nd day in a row
iShares U.S. Energy (IYE) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, IYE ended the month -1.91% lower at 20.01 after gaining $0.43 (2.2%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 19.74, the ETF confirmed its breakout through the previous session high after trading up to $0.40 above it intraday.
Daily Candlestick Chart (IYE as at Jun 30, 2020):
Tuesday's trading range has been $0.91 (4.7%), that's slightly above the last trading month's daily average range of $0.80. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IYE. Prices continued to consolidate within a tight trading range between 19.21 and 20.54 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Notwithstanding a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 20.59 (R1). iShares U. S. found buyers again today around 19.23 for the third trading day in a row after having found demand at 19.27 in the previous session and at 19.21 two days ago. The last time this happened on March 11th, IYE actually lost -11.90% on the following trading day.
IYE shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might speed up should prices move below the close-by swing low at 19.21 where further sell stops could get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for iShares U. S.. Out of 48 times, IYE closed lower 56.25% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 54.17% with an average market move of 0.00%.