UWT closes above its opening price after recovering from early selling pressure
VelocityShares 3x Long Crude Oil ETNs linked to the S&P GSCI Crude Oil Index ER (UWT) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, UWT finished Thursday at 11.40 losing $0.33 (-2.81%). Trading up to $0.23 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, UWT gained 12.94% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (UWT as at Aug 15, 2019):
Thursday's trading range has been $0.62 (5.51%), that's below the last trading month's daily average range of $0.93. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for UWT.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After having been unable to move lower than 10.99 in the previous session, the market found buyers again around the same price level today at 11.02.
VelocityShares 3x shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could accelerate should prices move below the close-by swing low at 10.99 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for VelocityShares 3x. Out of 188 times, UWT closed higher 59.04% 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 53.19% with an average market move of 1.57%.