SVXY finds buyers again around 51.11
ProShares Short VIX Short Term Futures (SVXY) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
SVXY ended the week -1.63% lower at 51.76 after losing $0.38 (-0.73%) today. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SVXY as at May 17, 2019):
Friday's trading range has been $1.37 (2.68%), that's slightly below the last trading month's daily average range of $1.46. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SVXY.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on Wednesday, SVXY gained 2.20% on the following trading day.
Prices are trading close to the key technical resistance level at 52.60 (R1). After having been unable to move lower than 51.25 in the previous session, the market found buyers again around the same price level today at 51.11.
Although ProShares Short is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the close-by swing high at 52.62 where further buy stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for ProShares Short. Out of 439 times, SVXY closed higher 59.00% 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 62.64% with an average market move of 2.01%.