SVXY closes higher for the 4th day in a row
ProShares Short VIX Short Term Futures (SVXY) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, SVXY ended Thursday at 32.24 gaining $0.28 (0.88%) ahead of tomorrow's Independence Day OBS market holiday. Today's close at 32.24 marks the highest recorded closing price since June 10th.
Daily Candlestick Chart (SVXY as at Jul 02, 2020):
Thursday's trading range has been $0.76 (2.33%), that's below the last trading month's daily average range of $1.32. 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.
After spiking up to 32.85 during the day, the market found resistance at the 50-day moving average at 32.73. The last time this happened on September 11, 2019, SVXY actually gained 1.25% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for ProShares Short. Out of 108 times, SVXY closed higher 63.89% 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 60.19% with an average market move of 1.99%.