DRIP runs into sellers around 5.96 for the third day in a row
Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 3X Shares (DRIP) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DRIP finished the month -21.66% lower at 5.39 after losing $0.34 (-5.93%) today. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 5.60, Direxion Daily confirmed its breakout through the prior session low after trading up to $0.25 below it intraday.
Daily Candlestick Chart (DRIP as at Jun 30, 2020):
Tuesday's trading range has been $0.61 (10.48%), that's above the last trading month's daily average range of $0.51. 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 DRIP.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on June 25th, DRIP actually gained 9.71% on the following trading day.
The market ran into sellers again today around 5.96 for the third trading day in a row after having found sellers at 6.04 in the previous session and at 6.04 two days ago.
Though the ETF is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could accelerate should prices move below the close-by swing low at 4.72 where further sell stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Its common bearish interpretation has been confirmed for Direxion Daily. Out of 48 times, DRIP closed lower 54.17% 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 three trading days, showing a win rate of 58.33% with an average market move of 0.11%.