VIXY closes within previous day's range
ProShares Trust VIX Short-Term Futures (VIXY) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
VIXY finished Thursday at 24.44 losing $0.62 (-2.47%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (VIXY as at Aug 15, 2019):
Thursday's trading range has been $1.32 (5.41%), that's slightly above the last trading month's daily average range of $1.29. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for VIXY.
Four candlestick patterns are matching today's price action, the Gravestone Doji, the Northern Doji and the Shooting Star which are known as bearish patterns and one neutral pattern, the Doji. The last time a Shooting Star showed up on August 2nd, VIXY actually gained 14.73% on the following trading day.
After trading down to 24.18 earlier during the day, ProShares Trust bounced off the key technical support level at 24.26 (S1). The failure to close below the support might increase that levels importance as support going forward. Prices are trading close to the key technical resistance level at 25.82 (R1).
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Trading close to June's high at 25.82 we could see further upside momentum if potential buy stops at the level get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Gravestone Doji" stand out. Its common bearish interpretation has been confirmed for ProShares Trust. Out of 37 times, VIXY closed lower 67.57% 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 two trading days, showing a win rate of 67.57% with an average market move of -0.79%.