VPL closes below its opening price unable to hold early session gains
Vanguard FTSE Pacific (VPL) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
VPL ended the week -1.49% lower at 63.96 after losing $0.45 (-0.7%) today. Trading $0.28 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on May 8th, VPL lost -0.88% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (VPL as at May 17, 2019):
Friday's trading range has been $0.40 (0.62%), that's slightly below the last trading month's daily average range of $0.50. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for VPL.
Prices are trading close to the key technical support level at 63.69 (S1). Unable to break through the key technical resistance level at 64.19 (R1), the ETF closed below it after spiking up to 64.33 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could accelerate should prices move below the close-by swing low at 63.62 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Vanguard FTSE. Out of 336 times, VPL closed higher 55.95% 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 59.23% with an average market move of 0.57%.