DJIA closes below its opening price unable to hold early session gains
Dow Jones Industrial Average Index (DJIA) Technical Analysis Report for Sep 20, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DJIA ended the week -1.05% lower at 26935.07 after losing $159.72 (-0.59%) today. Trading $92.55 higher after the open, the index was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 27064.21, the stock index confirmed its breakout through the prior session low after trading up to $137.53 below it intraday.
Daily Candlestick Chart (DJIA as at Sep 20, 2019):
Friday's trading range has been $268.07 (0.99%), that's slightly above the last trading month's daily average range of $240.69. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DJIA.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on August 27th, DJIA actually gained 1.00% on the following trading day.
Prices are trading close to the key technical support level at 26899.15 (S1).
Dow Indu. shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling might speed up should prices move below the nearby swing low at 26899.15 where further sell stops could get triggered. With prices trading close to this year's high at 27398.68, upside momentum might accelerate should the market be able to break out to new highs for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Dow Indu.. Out of 232 times, DJIA closed higher 56.90% 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 65.09% with an average market move of 0.75%.
With four out of the other six Major World Indices closing lower today, the ones that stand out on the negative side are NDX losing -0.99% and SPX closing -0.49% lower. On the flipside the best performers have been NKY closing 0.16% higher and DAX gaining 0.08%. Read more