JDST dominated by bears dragging the market lower throughout the day
Direxion Daily Junior Gold Miners Index Bear 3X Shares (JDST) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, JDST finished the month -18.91% lower at 16.98 after losing $1.12 (-6.19%) today on high volume. Today's close at 16.98 marks the lowest recorded closing price ever. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 18.08, the ETF confirmed its breakout through the prior session low after trading up to $1.33 below it intraday.
Daily Candlestick Chart (JDST as at Jun 30, 2020):
Tuesday's trading range has been $1.73 (9.46%), that's slightly above the last trading month's daily average range of $1.62. 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 JDST.
One bearish candlestick pattern matches today's price action, the Black Candle.
Crossing below the lower Bollinger Band for the first time since June 23rd, prices have shown unusually strong downward momentum in the short-term. This might either indicate a potential selling climax after which prices could head back up towards the mean of the Bollinger Bands at 20.57 or signal the beginning of a strong momentum breakout leading to even lower prices. The last time prices broke out below the lower Bollinger Band on June 22nd, JDST lost -4.36% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 20.10 where further buy stops could get triggered. As prices are trading close to June's high at 24.21, upside momentum might speed up should the market mark new highs for the month.
Among the 10 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. Although it is usually interpreted as bearish, it has actually shown to be bullish for Direxion Daily. Out of 418 times, JDST closed higher 56.46% of the time on the next trading day after the market condition occurred.