SHY still stuck within tight trading range
iShares 1-3 Year Treasury Bond ETF (SHY) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SHY ended Thursday at 86.67 gaining $0.10 (0.12%). Closing above Wednesday's high at 86.63, the ETF confirmed its breakout through the previous session high after trading up to $0.08 above it intraday.
Daily Candlestick Chart (SHY as at Mar 26, 2020):
Thursday's trading range has been $0.13 (0.15%), that's below the last trading month's daily average range of $0.25. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for SHY. Prices continued to consolidate within a tight trading range between 86.38 and 86.73 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 86.78 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 86.73 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 86.47 where further sell stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Its common bearish interpretation has been confirmed for SHY. Out of 285 times, SHY closed lower 48.77% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 51.58% with an average market move of -0.01%.