VGT dominated by bulls lifting the market higher throughout the day
Vanguard Information Tech (VGT) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, VGT finished the month 6.77% higher at 278.71 after gaining $4.97 (1.82%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 273.74, Vanguard Information confirmed its breakout through the previous session high after trading up to $5.77 above it intraday.
Daily Candlestick Chart (VGT as at Jun 30, 2020):
Tuesday's trading range has been $5.98 (2.19%), that's slightly above the last trading month's daily average range of $5.91. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for VGT.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 278.02 (now S1), which is likely to act as support going forward. The last time this happened on June 15th, VGT gained 2.10% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 282.04 where further buy stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for Vanguard Information. Out of 419 times, VGT closed higher 57.28% 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 65.87% with an average market move of 0.76%.