JNUG closes lower for the 3rd day in a row
Direxion Junior Gold Miners Index 3x Shares (JNUG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, JNUG ended the week 2.43% higher at 100.25 after losing $0.82 (-0.81%) today on low volume ahead of tomorrow's Memorial Day market holiday. Trading $3.08 higher after the open, the 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 Wednesday, JNUG lost -5.45% on the following trading day. 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 May 22, 2020):
Friday's trading range has been $5.97 (5.82%), that's below the last trading month's daily average range of $6.97. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for JNUG.
While JNUG ETF is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the nearby swing high at 110.22 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 96.64 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for JNUG ETF. Out of 264 times, JNUG closed higher 56.82% of the time on the next trading day after the market condition occurred.