SVXY dominated by bulls lifting the market higher throughout the day
ProShares Short VIX Short Term Futures (SVXY) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SVXY finished the month -8.22% lower at 31.50 after gaining $0.79 (2.57%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 30.72, the ETF confirmed its breakout through the previous session high after trading up to $0.88 above it intraday.
Daily Candlestick Chart (SVXY as at Jun 30, 2020):
Tuesday's trading range has been $1.08 (3.53%), that's slightly below the last trading month's daily average range of $1.33. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SVXY.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 25th, SVXY actually lost -3.00% on the following trading day.
Buyers managed to take out the key technical resistance level at 31.26 (now S1), which is likely to act as support going forward.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 31.88 where further buy stops could get activated.
Among the nine 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 ProShares Short. Out of 303 times, SVXY closed higher 62.38% 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 60.07% with an average market move of 0.99%.