IYT unable to break through key resistance level
iShares Transportation Average (IYT) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, IYT ended the month 2.06% higher at 162.64 after gaining $2.21 (1.38%) today. Closing above Monday's high at 160.53, the market confirmed its breakout through the prior session high after trading up to $2.90 above it intraday.
Daily Candlestick Chart (IYT as at Jun 30, 2020):
Tuesday's trading range has been $3.72 (2.32%), that's slightly below the last trading month's daily average range of $4.46. 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 IYT.
One bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 163.41 (R1), the ETF closed below it after spiking up to 163.43 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on June 18th, IYT lost -1.45% on the following trading day.
IShares Transportation shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the four 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 Transportation. Out of 332 times, IYT closed higher 56.93% 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 60.84% with an average market move of 0.49%.