DJIA dominated by bulls lifting the market higher throughout the day
Dow Jones Industrial Average Index (DJIA) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, DJIA finished Thursday at 22552.17 gaining $1351.62 (6.38%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 22019.93, the stock index confirmed its breakout through the prior session high after trading up to $575.13 above it intraday.
Daily Candlestick Chart (DJIA as at Mar 26, 2020):
Thursday's trading range has been $1167.96 (5.44%), that's slightly below the last trading month's daily average range of $1268.39. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for DJIA.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, DJIA gained 2.39% on the following trading day.
Prices are trading close to the key technical resistance level at 23189.76 (R1).
Although Dow Indu. is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Dow Indu.. Out of 178 times, DJIA closed higher 55.62% 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 64.04% with an average market move of 0.37%.
With four out of the other six Major World Indices closing higher today, the ones that stand out on the positive side are SPX gaining 6.24% and NDX closing 5.72% higher. On the flipside the worst performers have been NKY closing -4.51% lower and HSI losing -0.74%. Read more