MTUM closes higher for the 2nd day in a row
iShares Edge MSCI USA Momentum Factor (MTUM) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MTUM finished the month 4.06% higher at 131.03 after gaining $2.69 (2.1%) today on low volume. Today's close at 131.03 marks the highest recorded closing price since February 24th. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (MTUM as at Jun 30, 2020):
Tuesday's trading range has been $3.11 (2.42%), that's above the last trading month's daily average range of $2.48. 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 MTUM.
Two candlestick patterns are matching today's price action, the Bullish Belt-hold and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 129.50 (now S1), which is likely to act as support going forward. The last time this happened on June 25th, MTUM actually lost -1.96% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 132.19 where further buy stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for iShares Edge. Out of 596 times, MTUM closed higher 56.88% 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 66.11% with an average market move of 0.45%.