IYZ pushes through Thursday's high
iShares US Telecommunications ETF (IYZ) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
IYZ ended the month 4.17% higher at 28.71 after gaining $0.14 (0.49%) today. Today's close at 28.71 marks the highest recorded closing price since June 10th. Trading up to $0.23 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 28.63, the ETF confirmed its breakout through the prior session high after trading up to $0.10 above it intraday.
Daily Candlestick Chart (IYZ as at Jul 31, 2020):
Friday's trading range has been $0.41 (1.44%), that's far above the last trading month's daily average range of $0.30. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IYZ.
Buyers managed to take out the key technical resistance level at 28.69 (now S1), which is likely to act as support going forward. After having been unable to move lower than 28.31 in the previous session, IYZ found buyers again around the same price level today at 28.32. The last time this happened on Monday, IYZ actually lost -0.32% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 28.31 where further sell stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for IYZ. Out of 245 times, IYZ closed higher 54.29% 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 54.29% with an average market move of 0.20%.