JNUG closes lower for the 2nd day in a row
Direxion Junior Gold Miners Index 3x Shares (JNUG) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, JNUG finished the week 38.86% higher at 4.61 after losing $1.28 (-21.73%) today.
Daily Candlestick Chart (JNUG as at Mar 27, 2020):
Friday's trading range has been $1.35 (25.52%), that's below the last trading month's daily average range of $6.89. 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.
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 3.32 (S1).
While the ETF is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might speed up should prices move below the close-by swing low at 3.32 where further sell stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for JNUG ETF. Out of 203 times, JNUG closed higher 56.16% 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 56.16% with an average market move of 1.06%.