QID closes lower for the 2nd day in a row
ProShares UltraShort QQQ (QID) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, QID finished the month -13.15% lower at 12.68 after losing $0.50 (-3.79%) today. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (QID as at Jun 30, 2020):
Tuesday's trading range has been $0.60 (4.55%), that's slightly above the last trading month's daily average range of $0.55. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for QID.
One bearish candlestick pattern matches today's price action, the Black Candle.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 12.35 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 "2 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for ProShares UltraShort. Out of 325 times, QID closed lower 59.38% 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 66.15% with an average market move of -1.36%.