TIP rises to highest close ever
iShares TIPS Bond ETF (TIP) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, TIP ended the month 2.33% higher at 125.86 after surging $0.37 (0.29%) today on high volume. This is the biggest single-day gain in over a month. Today's close at 125.86 marks the highest recorded closing price ever. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (TIP as at Jul 31, 2020):
Friday's trading range has been $0.56 (0.45%), that's far above the last trading month's daily average range of $0.30. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TIP.
One bullish candlestick pattern matches today's price action, the White Candle.
After having been unable to move lower than 125.34 in the previous session, the ETF found buyers again around the same price level today at 125.36. The last time this happened on Monday, TIP gained 0.18% on the following trading day.
Crossing above the upper Bollinger Band for the first time since July 21st, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 124.45 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for TIP. Out of 137 times, TIP closed lower 59.12% 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 53.28% with an average market move of -0.39%.