DJA pushes through Monday's high
Dow Jones Composite Average Index (DJA) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, DJA ended the month 0.64% higher at 8292.07 after gaining $72.74 (0.88%) today. Closing above Monday's high at 8221.31, the index confirmed its breakout through the prior session high after trading up to $103.99 above it intraday.
Daily Candlestick Chart (DJA as at Jun 30, 2020):
Tuesday's trading range has been $141.75 (1.73%), that's slightly below the last trading month's daily average range of $177.00. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DJA.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 8335.82 (R1).
Dow Comp. shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the nearby swing high at 8414.94 where further buy stops might get triggered.
Among the four 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 409 times, DJA closed higher 54.52% 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 65.53% with an average market move of 0.32%.