DJIA runs into sellers again around 26248.70
Dow Jones Industrial Average Index (DJIA) Technical Analysis Report for Jun 11, 2019 | by Techniquant Editorial Team
DJIA finished Tuesday at 26048.51 edging lower $14.17 (-0.05%). Closing below Monday's low at 26054.31, the market confirmed its breakout through the previous session low after trading up to $55.44 below it intraday.
Daily Candlestick Chart (DJIA as at Jun 11, 2019):
Tuesday's trading range has been $249.83 (0.95%), that's slightly below the last trading month's daily average range of $251.90. 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 slightly higher than usual for DJIA.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Even with a strong opening Dow Indu. closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 25998.87 during the day, the index found support at the 50-day moving average at 26006.52. The last time this happened on May 6th, DJIA actually lost -1.79% on the following trading day. Unable to break through the key technical resistance level at 26241.42 (R1), the Dow closed below it after spiking up to 26248.70 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move above 26210.61 in the previous session, the stock index ran into sellers again around the same price level today, missing to move higher than 26248.70.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Dow Indu.. Out of 58 times, DJIA closed higher 62.07% 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 65.52% with an average market move of 0.66%.
With five out of the other six Major World Indices closing higher today, the ones that stand out on the positive side are DAX gaining 0.92% and HSI closing 0.76% higher. On the flipside the worst performer has been SPX closing -0.03% lower. Read more