DJA closes above its opening price after recovering from early selling pressure
Dow Jones Composite Average Index (DJA) Technical Analysis Report for Apr 22, 2019 | by Techniquant Editorial Team
DJA ended Monday at 8816.58 losing $13.84 (-0.16%). Trading up to $20.49 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (DJA as at Apr 22, 2019):
Monday's trading range has been $35.02 (0.4%), that's far below the last trading month's daily average range of $120.19. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DJA. Prices continued to consolidate within a tight trading range between 8706.65 and 8894.71 where it has been caught now for the whole last trading week.
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, two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji. The last time a Doji showed up on April 17th, DJA gained 0.40% on the following trading day.
Prices are trading close to the key technical resistance level at 8894.71 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 8894.71 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 8706.65 where further sell stops might get triggered. 2018's high at 8976.01 is within reach and we could see further upside momentum should Dow Comp. manage to break out beyond.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Dow Comp.. Out of 178 times, DJA closed higher 54.49% 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 61.80% with an average market move of 0.41%.