SPXL breaks back above 100-day moving average
Direxion Daily S&P 500 Bull 3X Shares (SPXL) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SPXL finished the month 3.16% higher at 41.81 after gaining $1.70 (4.24%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 40.22, the ETF confirmed its breakout through the previous session high after trading up to $2.22 above it intraday.
Daily Candlestick Chart (SPXL as at Jun 30, 2020):
Tuesday's trading range has been $2.51 (6.27%), that's slightly above the last trading month's daily average range of $2.43. 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 SPXL.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close back above the 100-day moving average at 40.69 for the first time since June 23rd. When this moving average was crossed above the last time on June 22nd, SPXL gained 1.23% on the following trading day.
Direxion Daily shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Direxion Daily. Out of 341 times, SPXL closed higher 59.53% 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 10 trading days, showing a win rate of 64.52% with an average market move of 1.29%.