DJIA closes below its opening price unable to hold early session gains
Dow Jones Industrial Average Index (DJIA) Technical Analysis Report for Jul 16, 2019 | by Techniquant Editorial Team
DJIA ended Tuesday at 27335.63 losing $23.53 (-0.09%). Trading $49.38 higher after the open, the Dow was unable to hold its gains as the bears took control ending the day below its opening price. 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 Jul 16, 2019):
Tuesday's trading range has been $108.44 (0.4%), that's below the last trading month's daily average range of $167.08. 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.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on June 28th, DJIA actually gained 0.44% on the following trading day.
After having been unable to move lower than 27294.17 in the previous session, the index found buyers again around the same price level today at 27290.24.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 26816.90.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Dow Indu.. Out of 114 times, DJIA closed higher 59.65% 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 64.91% with an average market move of 0.50%.
With three of the other Major World Indices closing higher and three closing lower today, the winners of the day are FTSE surging 0.6% and DAX gaining 0.35%. On the flipside the worst performers have been NKY closing -0.69% lower and NDX losing -0.5%. Read more