DJIA closes within prior day's range after lackluster session
Dow Jones Industrial Average Index (DJIA) Technical Analysis Report for Feb 13, 2020 | by Techniquant Editorial Team
DJIA finished Thursday at 29423.31 losing $128.11 (-0.43%). Trading $99.37 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 Feb 13, 2020):
Thursday's trading range has been $189.47 (0.64%), that's below the last trading month's daily average range of $252.43. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DJIA. Prices continued to consolidate within a tight trading range between 29210.47 and 29568.57 where it has been caught now for the last three trading days.
After moving higher in the previous session, the index closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading down to 29345.93 earlier during the day, the market bounced off the key technical support level at 29373.62 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on February 6th, DJIA actually lost -0.94% on the following trading day. After having been unable to move above 29568.57 in the previous session, Dow Indu. ran into sellers again around the same price level today, failing to move higher than 29535.40.
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 29568.57 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Dow Indu.. Out of 373 times, DJIA closed higher 62.73% 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 58.45% with an average market move of 0.39%.
With six out of the other six Major World Indices closing lower today, the ones that stand out on the negative side are FTSE losing -1.09% and HSI closing -0.34% lower. None of the markets managed to end the day in the green. Read more