DJIA closes within prior day's range after lackluster session
Dow Jones Industrial Average Index (DJIA) Technical Analysis Report for Apr 15, 2019 | by Techniquant Editorial Team
DJIA ended Monday at 26384.77 losing $27.53 (-0.1%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (DJIA as at Apr 15, 2019):
Monday's trading range has been $108.38 (0.41%), that's far below the last trading month's daily average range of $197.43. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DJIA.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 26487.57 (R1). After having been unable to move lower than 26309.72 in the prior session, Dow Indu. found buyers again around the same price level today at 26316.42. The last time this happened on April 10th, DJIA actually lost -0.05% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 26436.68 where further buy stops could get activated. With prices trading close to this year's high at 26487.57, upside momentum might accelerate should the Dow be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Dow Indu.. Out of 599 times, DJIA closed higher 55.76% 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 64.11% with an average market move of 0.48%.
With three of the other Major World Indices closing higher and three closing lower today, the winners of the day are NKY surging 1.37% and DAX gaining 0.17%. On the flipside the worst performers have been HSI closing -0.33% lower and SPX losing -0.06%. Read more