SOXS dominated by bears dragging the market lower throughout the day
Direxion Daily Semiconductor Bear 3x Shares (SOXS) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SOXS finished the month -24.43% lower at 5.32 after losing $0.46 (-7.96%) today. Today's close at 5.32 marks the lowest recorded closing price ever. 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 (SOXS as at Jun 30, 2020):
Tuesday's trading range has been $0.44 (7.72%), that's slightly above the last trading month's daily average range of $0.42. 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 SOXS.
Two candlestick patterns are matching today's price action, the Bearish Belt-hold and the Black Candle which are both known as bearish patterns.
Prices broke below the key technical support level at 5.34 (now R1), which is likely to act as resistance going forward. The last time this happened on May 27th, SOXS actually gained 6.55% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Down" stand out. Its common bearish interpretation has been confirmed for Direxion Daily. Out of 220 times, SOXS closed lower 52.73% 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 69.09% with an average market move of -2.87%.