DJT closes higher for the 3rd day in a row
Dow Jones Transportation Average Index (DJT) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, DJT finished Wednesday at 10496.97 gaining $51.70 (0.49%). Today's close at 10496.97 marks the highest recorded closing price since December 3, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 10490.64, the stock index confirmed its breakout through the prior session high after trading up to $27.35 above it intraday.
Daily Candlestick Chart (DJT as at Feb 13, 2019):
Wednesday's trading range has been $86.29 (0.83%), that's below the last trading month's daily average range of $133.87. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DJT.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on February 5th, DJT actually lost -0.20% on the following trading day.
Although the market 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 five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Dow Trans.. Out of 156 times, DJT closed higher 59.62% 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 63.46% with an average market move of 0.97%.