SRTY drops to lowest close since September 25, 2018
ProShares UltraPro Short Russell2000 (SRTY) Technical Analysis Report for Sep 13, 2019 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, SRTY finished the week -13.58% lower at 21.89 after edging lower $0.10 (-0.45%) today. Today's close at 21.89 marks the lowest recorded closing price since September 25, 2018. Trading up to $0.44 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SRTY as at Sep 13, 2019):
Friday's trading range has been $0.71 (3.28%), that's below the last trading month's daily average range of $1.11. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SRTY.
Prices are trading close to the key technical support level at 21.81 (S1).
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 25.44. The last time this happened on July 31st, SRTY gained 4.40% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
2018's low at 20.36 is within reach and we might see further downside momentum should ProShares UltraPro break out beyond.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for ProShares UltraPro. Out of 449 times, SRTY closed lower 51.89% 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 61.25% with an average market move of -2.37%.