DGAZ closes within previous day's range
VS 3X INV NAT GAS (DGAZ) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
DGAZ finished the week -0.65% lower at 114.68 after gaining $1.64 (1.45%) today. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (DGAZ as at May 17, 2019):
Friday's trading range has been $4.06 (3.62%), that's slightly below the last trading month's daily average range of $5.16. 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 DGAZ.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Wednesday, DGAZ actually lost -4.05% on the following trading day.
Prices are trading close to the key technical resistance level at 118.50 (R1).
Though VS 3X is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the nearby swing high at 118.90 where further buy stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for VS 3X. Out of 514 times, DGAZ closed lower 51.17% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after seven trading days, showing a win rate of 54.09% with an average market move of 0.69%.