DJA closes lower for the 2nd day in a row
Dow Jones Composite Average Index (DJA) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DJA finished the week 1.05% higher at 9682.42 after losing $18.09 (-0.19%) today ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (DJA as at Feb 14, 2020):
Friday's trading range has been $61.49 (0.63%), that's slightly below the last trading month's daily average range of $75.72. 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 DJA. Prices continued to consolidate within a tight trading range between 9650.61 and 9727.42 where it has been caught now for the last three trading days.
After trading down to 9650.61 earlier during the day, the market bounced off the key technical support level at 9670.55 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on January 2nd, DJA actually lost -0.65% on the following trading day. After having been unable to move lower than 9652.91 in the previous session, Dow Comp. found buyers again around the same price level today at 9650.61.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 9727.42 where further buy stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Dow Comp.. Out of 697 times, DJA closed higher 57.82% 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 59.68% with an average market move of 0.34%.