MJ rallies 2.66% closing $0.34 higher
ETFMG Alternative Harvest (MJ) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
MJ finished the week 1.39% higher at 13.10 after surging $0.34 (2.66%) today. This is the biggest single-day gain in over a month. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 13.08, the ETF confirmed its breakout through the prior session high after trading up to $0.03 above it intraday.
Daily Candlestick Chart (MJ as at Jul 10, 2020):
Friday's trading range has been $0.34 (2.65%), that's slightly below the last trading month's daily average range of $0.40. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for MJ. Prices continued to consolidate within a tight trading range between 12.61 and 13.17 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 13.19 (R1). After having been unable to move above 13.08 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 13.11. The last time this happened on Wednesday, MJ lost -2.15% on the following trading day.
ETFMG Alternative shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the close-by swing high at 13.16 where further buy stops could get triggered. Further selling might move prices lower should the market test June's nearby low at 12.57.
Among the eight 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 ETFMG Alternative. Out of 151 times, MJ closed higher 52.32% 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 54.30% with an average market move of 0.21%.