DJIA ends the day indecisive
Dow Jones Industrial Average Index (DJIA) Technical Analysis Report for Dec 06, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DJIA ended Thursday at 24947.67 losing $79.40 (-0.32%) on high volume ahead of tomorrow's NFP report. Trading up to $495.20 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, DJIA actually lost -3.10% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (DJIA as at Dec 06, 2018):
Thursday's trading range has been $706.18 (2.85%), that's far above the last trading month's daily average range of $402.96. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DJIA.
Though trading as low as 24242.22 during the day, the Dow has decisively rejected those price levels and formed a bullish Pin Bar closing $705.45 above today's low. Additionally, one bullish candlestick pattern matches today's price action, the Hammer.
After trading down to 24242.22 earlier during the day, the index bounced off the key technical support level at 24368.98 (S1). The failure to close below the support could increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 25040.58 (R1).
Although Dow Indu. is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Pin Bar" stand out. Its common bullish interpretation has been confirmed for Dow Indu.. Out of 8 times, DJIA closed higher 87.50% 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 50.00% with an average market move of 0.42%.
With five out of the other six Major World Indices closing lower today, the ones that stand out on the negative side are DAX losing -3.48% and FTSE closing -3.15% lower. On the flipside the best performer has been NDX closing 0.64% higher. Read more