BRZU pops to highest close since March 17th
Direxion Daily Brazil Bull 3X Shares (BRZU) Technical Analysis Report for Jun 02, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BRZU finished Tuesday at 76.30 surging $8.06 (11.81%) on high volume. Today's close at 76.30 marks the highest recorded closing price since March 17th. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (BRZU as at Jun 02, 2020):
Tuesday's trading range has been $5.11 (7.1%), that's far above the last trading month's daily average range of $3.66. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BRZU.
Two candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns.
Crossing above the upper Bollinger Band for the first time since May 27th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 55.11 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on May 26th, BRZU gained 9.42% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Direxion Daily. Out of 64 times, BRZU closed higher 51.56% 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 57.81% with an average market move of 3.11%.