USLV dominated by bulls lifting the market higher throughout the day
VS 3X SILVER (USLV) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
USLV ended the month -3.63% lower at 70.14 after gaining $5.18 (7.97%) today. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (USLV as at Jun 30, 2020):
Tuesday's trading range has been $5.67 (8.67%), that's above the last trading month's daily average range of $3.83. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for USLV.
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.
Buyers managed to take out the key technical resistance level at 67.43 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since May 20th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 64.51 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on May 14th, USLV gained 15.90% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for VS 3X. Out of 116 times, USLV closed lower 57.76% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 62.07% with an average market move of -2.76%.
Market Conditions for USLV as at Jun 30, 2020
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