VBK pushes through Monday's high
Vanguard Small-Cap Growth (VBK) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, VBK finished the month 2.89% higher at 199.60 after gaining $3.07 (1.56%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 197.07, the ETF confirmed its breakout through the previous session high after trading up to $3.05 above it intraday.
Daily Candlestick Chart (VBK as at Jun 30, 2020):
Tuesday's trading range has been $3.82 (1.95%), that's slightly below the last trading month's daily average range of $4.49. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for VBK.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 25th, VBK actually lost -1.90% on the following trading day.
Vanguard Small-Cap managed to close back above the 20-day moving average at 198.25 for the first time since June 23rd.
The market 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 nearby swing high at 203.14 where further buy stops might get activated. As prices are trading close to June's high at 205.19, upside momentum could speed up should VBK mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for Vanguard Small-Cap. Out of 808 times, VBK closed higher 55.57% 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 60.02% with an average market move of 0.47%.