DJIA dominated by bulls lifting the market higher throughout the day
Dow Jones Industrial Average Index (DJIA) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, DJIA ended the month 1.69% higher at 25812.88 after gaining $217.08 (0.85%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 25601.15, the index confirmed its breakout through the previous session high after trading up to $304.23 above it intraday.
Daily Candlestick Chart (DJIA as at Jun 30, 2020):
Tuesday's trading range has been $430.24 (1.69%), that's slightly below the last trading month's daily average range of $551.69. 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.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Buyers managed to take out the key technical resistance level at 25667.68 (now S1), which is likely to act as support going forward. The last time this happened on June 25th, DJIA actually lost -2.84% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 26314.97 where further buy stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for Dow Indu.. Out of 531 times, DJIA closed higher 54.80% 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 64.22% with an average market move of 0.38%.
With five out of the other six Major World Indices closing higher today, the ones that stand out on the positive side are NDX gaining 1.96% and SPX closing 1.54% higher. On the flipside the worst performer has been FTSE closing -0.9% lower. Read more