JNUG closes below its opening price unable to hold early session gains
Direxion Junior Gold Miners Index 3x Shares (JNUG) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
JNUG finished the week 4.9% higher at 73.24 after edging lower $0.32 (-0.44%) today ahead of tomorrow's Presidents' Day market holiday. Trading $1.99 higher after the open, JNUG ETF was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on January 23rd, JNUG actually gained 5.30% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (JNUG as at Feb 14, 2020):
Friday's trading range has been $3.37 (4.52%), that's below the last trading month's daily average range of $4.51. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for JNUG. Prices continued to consolidate within a tight trading range between 70.13 and 76.52 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical support level at 70.69 (S1).
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 could speed up should prices move below the nearby swing low at 69.66 where further sell stops might get triggered. With prices trading close to this year's low at 67.46, downside momentum could accelerate should the market break out to new lows for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for JNUG ETF. Out of 253 times, JNUG closed higher 57.31% of the time on the next trading day after the market condition occurred.