DJIA closes above its opening price after recovering from early selling pressure
Dow Jones Industrial Average Index (DJIA) Technical Analysis Report for Mar 25, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, DJIA finished Wednesday at 21200.55 edging higher $495.64 (2.39%). Trading up to $512.00 lower after the open, the stock index managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on March 19th, DJIA actually lost -4.55% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (DJIA as at Mar 25, 2020):
Wednesday's trading range has been $1481.59 (7.04%), that's above the last trading month's daily average range of $1261.12. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for DJIA.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical support level at 20531.26 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Dow Indu.. Out of 295 times, DJIA closed higher 56.27% 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 64.41% with an average market move of 0.35%.
With five out of the other six Major World Indices closing higher today, the ones that stand out on the positive side are NKY gaining 8.04% and FTSE closing 4.45% higher. On the flipside the worst performer has been NDX closing -1.11% lower. Read more