UDOW pushes through key technical resistance level
ProShares UltraPro Dow30 (UDOW) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, UDOW finished the month 1.67% higher at 62.81 after gaining $1.34 (2.18%) today. Closing above Monday's high at 61.50, ProShares UltraPro confirmed its breakout through the prior session high after trading up to $2.20 above it intraday.
Daily Candlestick Chart (UDOW as at Jun 30, 2020):
Tuesday's trading range has been $3.13 (5.15%), that's slightly below the last trading month's daily average range of $4.13. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for UDOW.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on April 9th, UDOW lost -4.09% on the following trading day.
Buyers managed to take out the key technical resistance level at 62.43 (now S1), which is likely to act as support going forward.
The ETF shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 67.26 where further buy stops could get triggered. As prices are trading close to June's low at 56.52, downside momentum might speed up should the market mark new lows for the month.
Among the six 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 UltraPro. Out of 328 times, UDOW closed higher 57.93% 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 64.63% with an average market move of 1.53%.