JNUG breaks back above 50-day moving average
Direxion Junior Gold Miners Index 3x Shares (JNUG) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
JNUG finished the week -0.28% lower at 10.51 after gaining $0.19 (1.84%) today. Trading $0.24 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (JNUG as at Mar 15, 2019):
Friday's trading range has been $0.59 (5.59%), that's below the last trading month's daily average range of $0.70. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for JNUG.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
The ETF managed to close back above the 50-day moving average at 10.40. After having been unable to move lower than 10.24 in the prior session, JNUG ETF found buyers again around the same price level today at 10.21. The last time this happened on Monday, JNUG gained 5.64% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for JNUG ETF. Out of 63 times, JNUG closed higher 55.56% 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 two trading days, showing a win rate of 60.32% with an average market move of 0.16%.