VOT closes higher for the 2nd day in a row
Vanguard Mid-Cap Growth (VOT) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, VOT finished the month 2.56% higher at 165.08 after gaining $2.93 (1.81%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 162.21, the market confirmed its breakout through the previous session high after trading up to $3.44 above it intraday.
Daily Candlestick Chart (VOT as at Jun 30, 2020):
Tuesday's trading range has been $3.45 (2.13%), that's slightly above the last trading month's daily average range of $3.31. 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 lower than usual for VOT.
Two candlestick patterns are matching today's price action, the Bullish Belt-hold and the White Candle which are both known as bullish patterns.
The ETF managed to close back above the 20-day moving average at 164.46 for the first time since June 23rd. When this moving average was crossed above the last time on June 15th, VOT gained 1.87% on the following trading day. Prices are trading close to the key technical resistance level at 167.51 (R1).
Vanguard Mid-Cap shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 168.12 where further buy stops could get activated. With prices trading close to this year's high at 171.07, upside momentum might accelerate should VOT be able to break out to new highs for the year. As prices are trading close to June's high at 170.10, upside momentum could speed up should the market mark new highs for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Vanguard Mid-Cap. Out of 344 times, VOT closed higher 58.14% 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 62.50% with an average market move of 0.65%.