ERX dominated by bulls lifting the market higher throughout the day
Direxion Energy Bull 3X Shares (ERX) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ERX ended the month -6.45% lower at 15.09 after gaining $0.66 (4.57%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 14.68, the market confirmed its breakout through the prior session high after trading up to $0.59 above it intraday.
Daily Candlestick Chart (ERX as at Jun 30, 2020):
Tuesday's trading range has been $1.37 (9.68%), that's slightly above the last trading month's daily average range of $1.29. 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 higher than usual for ERX. Prices continued to consolidate within a tight trading range between 13.90 and 15.92 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 25th, ERX actually lost -7.14% on the following trading day.
The ETF found buyers again today around 13.90 for the third trading day in a row after having found demand at 14.00 in the previous session and at 13.92 two days ago.
Direxion Energy shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further selling might move prices lower should the market test May's nearby low at 12.72.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Its common bullish interpretation has been confirmed for Direxion Energy. Out of 82 times, ERX closed higher 57.32% 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 54.88% with an average market move of 1.18%.