DGAZ closes below its opening price unable to hold early session gains
VS 3X INV NAT GAS (DGAZ) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
DGAZ finished Thursday at 428.00 losing $21.62 (-4.81%) on low volume ahead of tomorrow's Independence Day OBS market holiday. Trading $19.51 higher after the open, VS 3X was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 11th, DGAZ actually gained 11.05% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (DGAZ as at Jul 02, 2020):
Thursday's trading range has been $29.57 (6.81%), that's slightly below the last trading month's daily average range of $31.78. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for DGAZ.
Prices are trading close to the key technical support level at 409.74 (S1). After having been unable to move above 458.00 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 454.00.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 458.00 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 410.32 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for VS 3X. Out of 462 times, DGAZ closed higher 52.81% 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 52.38% with an average market move of 2.21%.