PRF pushes through key technical resistance level
Invesco FTSE RAFI US 1000 (PRF) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PRF finished the month 0.06% higher at 108.31 after gaining $1.31 (1.22%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 107.01, the ETF confirmed its breakout through the prior session high after trading up to $1.81 above it intraday.
Daily Candlestick Chart (PRF as at Jun 30, 2020):
Tuesday's trading range has been $2.15 (2.01%), that's slightly below the last trading month's daily average range of $2.34. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PRF.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Buyers managed to take out the key technical resistance level at 107.35 (now S1), which is likely to act as support going forward. The last time this happened on June 25th, PRF actually lost -2.53% on the following trading day.
Invesco FTSE shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the close-by swing high at 110.74 where further buy stops might get triggered.
Among the seven 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 Invesco FTSE. Out of 340 times, PRF closed higher 55.88% 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 62.65% with an average market move of 0.42%.