IYZ closes lower for the 2nd day in a row
iShares US Telecommunications ETF (IYZ) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, IYZ ended the week 1.16% higher at 30.49 after losing $0.18 (-0.59%) today ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (IYZ as at Feb 14, 2020):
Friday's trading range has been $0.23 (0.75%), that's slightly below the last trading month's daily average range of $0.30. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IYZ.
After trading down to 30.40 earlier during the day, the market bounced off the key technical support level at 30.47 (S1). The failure to close below the support could increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 30.71 (R1). After having been unable to move lower than 30.40 in the prior session, the ETF found buyers again around the same price level today at 30.40. The last time this happened on Monday, IYZ gained 1.25% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2019's high at 31.04 is within reach and we might see further upside momentum should IYZ manage to break out beyond.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for IYZ. Out of 438 times, IYZ closed higher 56.16% 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 56.39% with an average market move of 0.42%.