DJIA pushes through key technical resistance level
Dow Jones Industrial Average Index (DJIA) Technical Analysis Report for Sep 10, 2019 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, DJIA ended Tuesday at 26909.43 gaining $73.92 (0.28%). Today's close at 26909.43 marks the highest recorded closing price since July 30th. Trading up to $88.78 lower after the open, the Dow managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 26900.83, the market confirmed its breakout through the previous session high after trading up to $8.60 above it intraday.
Daily Candlestick Chart (DJIA as at Sep 10, 2019):
Tuesday's trading range has been $192.38 (0.72%), that's below the last trading month's daily average range of $290.33. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower 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 bullish Outside Bar. The last time this happened on August 7th, DJIA gained 1.43% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
Buyers managed to take out the key technical resistance level at 26907.37 (now S1), which is likely to act as support going forward. After having been unable to move above 26900.83 in the prior session, the stock index ran into sellers again around the same price level today, missing to move higher than 26909.43.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 27398.68, upside momentum could accelerate should Dow Indu. be able to break out to new highs for the year. Further buying might move prices higher should the market test August's close-by high at 27175.59.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Dow Indu.. Out of 45 times, DJIA closed higher 66.67% 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 66.67% with an average market move of 0.34%.
With five out of the other six Major World Indices closing higher today, the ones that stand out on the positive side are FTSE gaining 0.45% and DAX closing 0.35% higher. On the flipside the worst performer has been NDX closing -0.23% lower. Read more