DJIA pushes through key technical resistance level
Dow Jones Industrial Average Index (DJIA) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, DJIA finished Wednesday at 25543.27 gaining $117.51 (0.46%). Today's close at 25543.27 marks the highest recorded closing price since December 3, 2018.
Daily Candlestick Chart (DJIA as at Feb 13, 2019):
Wednesday's trading range has been $145.05 (0.57%), that's far below the last trading month's daily average range of $243.81. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for DJIA.
Buyers managed to take out the key technical resistance level at 25510.23 (now S1), which is likely to act as support going forward. The last time this happened on January 15th, DJIA gained 0.59% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Trading close to December's high at 25980.21 we might see further upside momentum if potential buy stops at the level get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Dow Indu.. Out of 334 times, DJIA closed higher 52.69% 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 64.37% with an average market move of 0.51%.
With six out of the other six Major World Indices closing higher today, the ones that stand out on the positive side are NKY gaining 1.34% and HSI closing 1.16% higher. None of the markets ended the day in the red. Read more