TQQQ closes lower for the 2nd day in a row
ProShares UltraPro QQQ (TQQQ) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, TQQQ ended Thursday at 56.37 edging lower $0.24 (-0.42%). 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 (TQQQ as at Aug 15, 2019):
Thursday's trading range has been $2.24 (3.94%), that's below the last trading month's daily average range of $3.00. 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 strongly higher than usual for TQQQ.
One bullish candlestick pattern matches today's price action, the Hammer. The last time a Hammer showed up on September 10, 2018, TQQQ gained 2.22% on the following trading day.
Prices are trading close to the key technical support level at 53.68 (S1). Prices are trading close to the key technical resistance level at 57.52 (R1).
Though ProShares UltraPro is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to August's low at 53.68, downside momentum might speed up should the ETF mark new lows for the month.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hammer" stand out. Its common bullish interpretation has been confirmed for ProShares UltraPro. Out of 22 times, TQQQ closed higher 59.09% 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 63.64% with an average market move of 3.24%.