DJIA breaks below Thursday's low
Dow Jones Industrial Average Index (DJIA) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
DJIA finished the week 2.84% higher at 25989.30 after losing $201.92 (-0.77%) today. Closing below Thursday's low at 26081.90, the stock index confirmed its breakout through the previous session low after trading up to $198.99 below it intraday.
Daily Candlestick Chart (DJIA as at Nov 09, 2018):
Friday's trading range has been $278.58 (1.07%), that's below the last trading month's daily average range of $410.20. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DJIA.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on October 24th, DJIA actually gained 1.63% on the following trading day.
Prices are trading close to the key technical support level at 25805.95 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 26277.82 where further buy stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Dow Indu.. Out of 500 times, DJIA closed higher 58.20% 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 60.60% with an average market move of 0.65%.
With five out of the other six Major World Indices closing lower today, the ones that stand out on the negative side are HSI losing -2.39% and NDX closing -1.67% lower. On the flipside the best performer has been DAX closing 0.02% higher. Read more