TQQQ ends the day indecisive
ProShares UltraPro QQQ (TQQQ) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, TQQQ finished the month 22.25% higher at 119.38 after gaining $6.11 (5.39%) today. Trading up to $6.44 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on July 24th, TQQQ gained 5.37% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (TQQQ as at Jul 31, 2020):
Friday's trading range has been $6.62 (5.55%), that's slightly below the last trading month's daily average range of $6.93. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for TQQQ.
Five candlestick patterns are matching today's price action, the Dragonfly Doji which is known as bullish pattern, three bearish patterns, the Bearish Doji Star, the Hanging Man and the Northern Doji and one neutral pattern, the Doji.
After trading down to 112.88 earlier during the day, ProShares UltraPro bounced off the key technical support level at 116.22 (S1). The failure to close below the support might increase that levels importance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 125.95, upside momentum could speed up should the ETF be able to break out to new highs for the year.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Dragonfly Doji" stand out. Its common bullish interpretation has been confirmed for ProShares UltraPro. Out of 3 times, TQQQ closed higher 66.67% 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 100.00% with an average market move of 7.92%.