DJA dominated by bulls lifting the market higher throughout the day
Dow Jones Composite Average Index (DJA) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, DJA ended Thursday at 7412.43 gaining $436.55 (6.26%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 7269.07, the index confirmed its breakout through the prior session high after trading up to $165.92 above it intraday.
Daily Candlestick Chart (DJA as at Mar 26, 2020):
Thursday's trading range has been $394.36 (5.59%), that's slightly below the last trading month's daily average range of $415.93. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for DJA.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, DJA gained 2.62% on the following trading day.
Prices are trading close to the key technical resistance level at 7520.22 (R1).
Although Dow Comp. is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the close-by swing high at 7520.22 where further buy stops might get triggered.
Among the seven 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 Dow Comp.. Out of 417 times, DJA closed higher 54.68% 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 64.27% with an average market move of 0.25%.