DJIA dominated by bulls lifting the market higher throughout the day
Dow Jones Industrial Average Index (DJIA) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
Moving higher for the 7th day in a row, DJIA finished Monday at 27791.44 surging $357.96 (1.3%). Today's close at 27791.44 marks the highest recorded closing price since February 24th. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (DJIA as at Aug 10, 2020):
Monday's trading range has been $315.65 (1.15%), that's slightly above the last trading month's daily average range of $294.07. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower 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 August 6th, DJIA gained 0.17% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 26806.03.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Dow Indu.. Out of 134 times, DJIA closed higher 65.67% 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 58.96% with an average market move of 0.27%.
With three out of the other five Major World Indices closing higher today, the ones that stand out on the positive side are FTSE gaining 0.31% and SPX closing 0.27% higher. On the flipside the worst performers have been HSI closing -0.63% lower and NDX losing -0.49%. Read more