DJT finds buyers at key support level
Dow Jones Transportation Average Index (DJT) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
DJT ended Tuesday at 10826.72 edging higher $7.25 (0.07%). 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 Apr 16, 2019):
Tuesday's trading range has been $102.94 (0.96%), that's below the last trading month's daily average range of $126.19. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for DJT.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 10740.00 earlier during the day, the stock index bounced off the key technical support level at 10763.75 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on March 8th, DJT gained 1.94% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 10929.61 where further buy stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Dow Trans.. Out of 362 times, DJT closed higher 61.33% 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 56.35% with an average market move of 0.40%.