VUG unable to break through key resistance level
Vanguard Growth (VUG) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, VUG ended the month 4.68% higher at 202.09 after gaining $3.70 (1.87%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 198.40, the market confirmed its breakout through the prior session high after trading up to $4.21 above it intraday.
Daily Candlestick Chart (VUG as at Jun 30, 2020):
Tuesday's trading range has been $4.45 (2.24%), that's slightly above the last trading month's daily average range of $4.00. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for VUG.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 25th, VUG actually lost -2.56% on the following trading day.
The ETF managed to close back above the 20-day moving average at 199.40. Unable to break through the key technical resistance level at 202.25 (R1), Vanguard Growth closed below it after spiking up to 202.61 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 205.93 where further buy stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for Vanguard Growth. Out of 387 times, VUG closed higher 59.95% 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 64.60% with an average market move of 0.48%.