SMH dominated by bulls lifting the market higher throughout the day
VanEck Vectors Semiconductor (SMH) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SMH ended the month 8.35% higher at 152.80 after gaining $3.63 (2.43%) today. 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 (SMH as at Jun 30, 2020):
Tuesday's trading range has been $3.48 (2.32%), that's slightly below the last trading month's daily average range of $3.53. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for SMH.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 15th, SMH gained 1.56% on the following trading day.
VanEck Vectors managed to close back above the 20-day moving average at 150.18. Prices are trading close to the key technical resistance level at 153.95 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 154.77, upside momentum could speed up should the ETF be able to break out to new highs for the year.
Among the eight 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 VanEck Vectors. Out of 342 times, SMH closed higher 53.22% 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 61.70% with an average market move of 0.51%.