JNUG still stuck within tight trading range
Direxion Junior Gold Miners Index 3x Shares (JNUG) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
JNUG ended Thursday at 5.89 losing $0.42 (-6.66%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (JNUG as at Mar 26, 2020):
Thursday's trading range has been $1.67 (24.17%), that's far below the last trading month's daily average range of $7.49. Weekly volatility is also lower, being way 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 3.32 and 7.18 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 3.50 (S1). JNUG ETF found buyers again today around 5.51 for the third trading day in a row after having found demand at 5.30 in the previous session and at 5.00 two days ago. The last time this happened on Monday, JNUG gained 40.15% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 3.32 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for JNUG ETF. Out of 84 times, JNUG closed higher 58.33% 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 53.57% with an average market move of 5.00%.