TIP closes higher for the 2nd day in a row
iShares TIPS Bond ETF (TIP) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, TIP finished the week 0.04% higher at 118.54 after edging higher $0.09 (0.08%) today ahead of tomorrow's Presidents' Day market holiday. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (TIP as at Feb 14, 2020):
Friday's trading range has been $0.13 (0.11%), that's far below the last trading month's daily average range of $0.24. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TIP.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Shooting Star. The last time a Shooting Star showed up on January 30th, TIP actually gained 0.43% on the following trading day.
Prices are trading close to the key technical resistance level at 118.74 (R1).
Though the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the close-by swing high at 118.74 where further buy stops might get activated. With prices trading close to this year's high at 119.10, upside momentum could accelerate should the ETF be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for TIP. Out of 203 times, TIP closed higher 53.69% 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 54.19% with an average market move of 0.10%.