VYM closes higher for the 2nd day in a row
Vanguard High Dividend Yield (VYM) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, VYM ended the month -1.8% lower at 78.78 after gaining $0.94 (1.21%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 77.91, the ETF confirmed its breakout through the prior session high after trading up to $1.23 above it intraday.
Daily Candlestick Chart (VYM as at Jun 30, 2020):
Tuesday's trading range has been $1.46 (1.88%), that's slightly below the last trading month's daily average range of $1.59. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for VYM. Prices continued to consolidate within a tight trading range between 76.29 and 79.14 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Vanguard High managed to close back above the 50-day moving average at 78.68 for the first time since June 23rd. After spiking up to 79.14 during the day, the market found resistance at the 100-day moving average at 78.88. The last time this happened on October 10, 2019, VYM actually gained 1.09% on the following trading day.
VYM shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the close-by swing high at 80.56 where further buy stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for Vanguard High. Out of 336 times, VYM closed higher 52.38% 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 64.29% with an average market move of 0.37%.