VTI pushes through key technical resistance level
Vanguard Total Stock Market (VTI) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, VTI ended the month 1.83% higher at 156.53 after gaining $2.28 (1.48%) today.
Daily Candlestick Chart (VTI as at Jun 30, 2020):
Tuesday's trading range has been $3.15 (2.04%), that's slightly above the last trading month's daily average range of $3.11. 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 VTI.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 156.05 (now S1), which is likely to act as support going forward. The last time this happened on May 14th, VTI gained 0.60% on the following trading day.
Vanguard Total 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 close-by swing high at 159.98 where further buy stops could get triggered.
Among the four 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 Total. Out of 345 times, VTI closed higher 60.29% 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 62.03% with an average market move of 0.52%.