DRIP dominated by bulls lifting the market higher throughout the day
Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 3X Shares (DRIP) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
DRIP finished Monday at 6.18 gaining $0.27 (4.57%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DRIP as at Jul 13, 2020):
Monday's trading range has been $0.45 (7.84%), that's slightly below the last trading month's daily average range of $0.49. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DRIP.
One bullish candlestick pattern matches today's price action, the White Candle.
The ETF managed to close back above the 50-day moving average at 6.05. When this moving average was crossed above the last time on July 9th, DRIP actually lost -7.51% on the following trading day.
Though Direxion Daily is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the nearby swing high at 6.50 where further buy stops could get activated. Further buying might move prices higher should the market test June's close-by high at 7.13.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Direxion Daily. Out of 42 times, DRIP closed lower 52.38% of the time on the next trading day after the market condition occurred.