VSS dominated by bulls lifting the market higher throughout the day
Vanguard FTSE All-Wld ex-US SmCp Idx (VSS) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, VSS ended the month 3.99% higher at 96.62 after gaining $0.31 (0.32%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 96.31, the ETF confirmed its breakout through the prior session high after trading up to $0.65 above it intraday.
Daily Candlestick Chart (VSS as at Jun 30, 2020):
Tuesday's trading range has been $1.22 (1.27%), that's slightly below the last trading month's daily average range of $1.40. 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 VSS. Prices continued to consolidate within a tight trading range between 95.23 and 97.31 where it has been caught now for the whole last trading week.
In spite of a weak opening Vanguard FTSE managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on August 13, 2019, VSS actually lost -2.46% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could speed up should prices move below the nearby swing low at 95.28 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Vanguard FTSE. Out of 35 times, VSS closed higher 68.57% 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 48.57% with an average market move of 0.28%.