LQD closes lower for the 2nd day in a row
iShares iBoxx $ Investment Grade Corporate Bond (LQD) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, LQD finished Monday at 135.51 losing $0.36 (-0.26%) on high volume. Closing below Friday's low at 135.68, iShares iBoxx confirmed its breakout through the prior session low after trading up to $0.25 below it intraday.
Daily Candlestick Chart (LQD as at Jul 13, 2020):
Monday's trading range has been $0.65 (0.48%), that's slightly below the last trading month's daily average range of $0.82. 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 LQD.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on July 10th, LQD lost -0.26% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 136.42 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for iShares iBoxx. Out of 465 times, LQD closed higher 56.99% 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 56.56% with an average market move of 0.12%.