GUSH dominated by bulls lifting the market higher throughout the day
Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 3X Shares (GUSH) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GUSH finished the month -4.14% lower at 34.30 after gaining $1.95 (6.03%) today on low volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 33.06, the market confirmed its breakout through the previous session high after trading up to $1.45 above it intraday.
Daily Candlestick Chart (GUSH as at Jun 30, 2020):
Tuesday's trading range has been $3.43 (10.73%), that's below the last trading month's daily average range of $4.55. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GUSH. Prices continued to consolidate within a tight trading range between 30.77 and 37.13 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a White Candle showed up on June 25th, GUSH actually lost -9.74% on the following trading day.
Direxion Daily found buyers again today around 31.08 for the third trading day in a row after having found demand at 30.86 in the prior session and at 30.77 two days ago.
The ETF shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the close-by swing low at 30.77 where further sell stops could get activated. Further selling might move prices lower should the market test May's nearby low at 27.25.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Direxion Daily. Out of 263 times, GUSH closed lower 58.94% 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 10 trading days, showing a win rate of 57.41% with an average market move of -1.77%.