LABU dominated by bulls lifting the market higher throughout the day
Direxion Daily S&P Biotech Bull 3X ETF (LABU) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
LABU ended the month 22.52% higher at 59.42 after gaining $2.75 (4.85%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 59.28, the ETF confirmed its breakout through the previous session high after trading up to $0.31 above it intraday.
Daily Candlestick Chart (LABU as at Jun 30, 2020):
Tuesday's trading range has been $4.39 (7.8%), that's slightly below the last trading month's daily average range of $4.90. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for LABU.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 25th, LABU actually lost -9.71% on the following trading day.
After having been unable to move above 59.28 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 59.59.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2019's high at 66.67 is within reach and we could see further upside momentum should LABU manage to break out beyond.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for LABU. Out of 200 times, LABU closed higher 53.00% 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 eight trading days, showing a win rate of 52.00% with an average market move of 0.91%.