SDOW closes below its opening price unable to hold early session gains
UltraPro Short Dow30 (SDOW) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
SDOW finished Thursday at 54.68 losing $0.71 (-1.28%). Trading $1.53 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SDOW as at Aug 15, 2019):
Thursday's trading range has been $1.96 (3.58%), that's slightly above the last trading month's daily average range of $1.88. 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 SDOW.
Four candlestick patterns are matching today's price action, the Gravestone Doji, the Northern Doji and the Shooting Star which are known as bearish patterns and one neutral pattern, the Doji. The last time a Shooting Star showed up on August 2nd, SDOW actually gained 8.73% on the following trading day.
While the ETF is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Gravestone Doji" stand out. Its common bearish interpretation has been confirmed for UltraPro Short. Out of 35 times, SDOW closed lower 65.71% 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 57.14% with an average market move of -0.04%.