DJT runs into sellers again around 9660.40
Dow Jones Transportation Average Index (DJT) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, DJT finished the week 4.34% higher at 9625.25 after edging higher $0.55 (0.01%) today. Today's close at 9625.25 marks the highest recorded closing price since December 13, 2018. Trading up to $68.59 lower after the open, Dow Trans. managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (DJT as at Jan 11, 2019):
Friday's trading range has been $139.65 (1.46%), that's far below the last trading month's daily average range of $240.10. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for DJT. Prices continued to consolidate within a tight trading range between 9400.36 and 9660.40 where it has been caught now for the last three trading days.
After having been unable to move above 9633.33 in the previous session, the stock index ran into sellers again around the same price level today, failing to move higher than 9660.40.
Although the index is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might accelerate should prices move below the close-by swing low at 9400.36 where further sell stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Dow Trans.. Out of 528 times, DJT closed higher 55.11% 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 60.61% with an average market move of 0.61%.