DJIA finds buyers again around 26458.60
Dow Jones Industrial Average Index (DJIA) Technical Analysis Report for Apr 22, 2019 | by Techniquant Editorial Team
DJIA finished Monday at 26511.05 losing $48.49 (-0.18%). Trading up to $52.20 lower after the open, the stock index managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (DJIA as at Apr 22, 2019):
Monday's trading range has been $94.45 (0.36%), that's far below the last trading month's daily average range of $158.11. 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. Additionally, three candlestick patterns are matching today's price action, the Bearish Harami Cross Pattern and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji.
After having been unable to move lower than 26444.53 in the prior session, the market found buyers again around the same price level today at 26458.60. The last time this happened on April 17th, DJIA gained 0.42% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 26602.42 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 26391.86 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Cross Pattern" stand out. Its common bearish interpretation has been confirmed for Dow Indu.. Out of 6 times, DJIA closed lower 83.33% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after six trading days, showing a win rate of 50.00% with an average market move of 0.11%.
With three out of the other three Major World Indices closing higher today, the ones that stand out on the positive side are NDX gaining 0.31% and SPX closing 0.1% higher. None of the markets ended the day in the red. Read more