JNUG rises to highest close since March 17th
Direxion Junior Gold Miners Index 3x Shares (JNUG) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, JNUG ended the month 13.07% higher at 110.33 after gaining $6.68 (6.44%) today. Today's close at 110.33 marks the highest recorded closing price since March 17th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 103.99, JNUG ETF confirmed its breakout through the previous session high after trading up to $7.65 above it intraday.
Daily Candlestick Chart (JNUG as at Jun 30, 2020):
Tuesday's trading range has been $10.00 (9.74%), that's above the last trading month's daily average range of $7.36. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for JNUG.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 26th, JNUG gained 2.34% on the following trading day.
Crossing above the upper Bollinger Band for the first time since May 20th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 94.78 or signal the beginning of a strong momentum breakout leading to even higher prices.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for JNUG ETF. Out of 102 times, JNUG closed lower 62.75% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 65.69% with an average market move of -5.13%.