VBR dominated by bulls lifting the market higher throughout the day
Vanguard Small-Cap Value (VBR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, VBR ended the month 1.58% higher at 106.92 after gaining $1.33 (1.26%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 105.92, Vanguard Small-Cap confirmed its breakout through the previous session high after trading up to $1.34 above it intraday.
Daily Candlestick Chart (VBR as at Jun 30, 2020):
Tuesday's trading range has been $2.09 (1.98%), that's below the last trading month's daily average range of $3.21. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for VBR.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on June 8th, VBR actually lost -2.58% on the following trading day.
Prices are trading close to the key technical support level at 105.52 (S1).
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 might accelerate should prices move above the nearby swing high at 109.46 where further buy stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Vanguard Small-Cap. Out of 129 times, VBR closed higher 49.61% 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 62.79% with an average market move of 0.60%.