DJIA stuck within tight trading range
Dow Jones Industrial Average Index (DJIA) Technical Analysis Report for Mar 14, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, DJIA ended Thursday at 25709.94 edging higher $7.05 (0.03%). Trading up to $70.99 lower after the open, Dow Indu. managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on March 8th, DJIA gained 0.79% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (DJIA as at Mar 14, 2019):
Thursday's trading range has been $131.53 (0.51%), that's below the last trading month's daily average range of $219.95. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for DJIA. Prices continued to consolidate within a tight trading range between 25522.17 and 25776.49 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical support level at 25611.55 (S1). After having been unable to move above 25776.49 in the previous session, the Dow ran into sellers again around the same price level today, failing to move higher than 25752.84.
Though the stock index is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the nearby swing high at 25776.49 where further buy stops could get triggered. With prices trading close to this year's high at 26241.42, upside momentum might speed up should the index be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Dow Indu.. Out of 169 times, DJIA closed higher 60.36% 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 60.36% with an average market move of 0.26%.
With three of the other Major World Indices closing higher and three closing lower today, the winners of the day are FTSE surging 0.37% and HSI gaining 0.15%. On the flipside the worst performers have been NDX closing -0.19% lower and SPX losing -0.09%. Read more