JNUG unable to break through key resistance level
Direxion Junior Gold Miners Index 3x Shares (JNUG) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
JNUG ended the month 46.69% higher at 161.84 after gaining $8.02 (5.21%) today. 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 Jul 31, 2020):
Friday's trading range has been $8.36 (5.3%), that's below the last trading month's daily average range of $10.14. Things look different on the weekly timeframe, where the market's trading range of the last week has been 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 July 22nd, JNUG actually lost -5.83% on the following trading day.
Unable to break through the key technical resistance level at 161.97 (R1), the market closed below it after spiking up to 164.39 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for JNUG ETF. Out of 404 times, JNUG closed lower 54.46% 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 two trading days, showing a win rate of 56.68% with an average market move of -0.20%.