SQQQ breaks below Monday's low
ProShares UltraPro Short QQQ (SQQQ) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SQQQ finished the month -19.83% lower at 7.56 after losing $0.49 (-6.09%) today. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 8.03, ProShares UltraPro confirmed its breakout through the prior session low after trading up to $0.53 below it intraday.
Daily Candlestick Chart (SQQQ as at Jun 30, 2020):
Tuesday's trading range has been $0.55 (6.84%), that's slightly above the last trading month's daily average range of $0.52. 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 SQQQ.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on June 22nd, SQQQ lost -2.59% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 7.30 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Its common bearish interpretation has been confirmed for ProShares UltraPro. Out of 418 times, SQQQ closed lower 59.81% 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 68.42% with an average market move of -2.35%.