DJT closes higher for the 2nd day in a row
Dow Jones Transportation Average Index (DJT) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, DJT finished the month 2.26% higher at 9172.72 after gaining $120.08 (1.33%) today. Closing above Monday's high at 9055.97, the stock index confirmed its breakout through the previous session high after trading up to $163.62 above it intraday.
Daily Candlestick Chart (DJT as at Jun 30, 2020):
Tuesday's trading range has been $212.40 (2.35%), that's slightly below the last trading month's daily average range of $247.49. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for DJT.
One bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 9187.40 (R1), Dow Trans. closed below it after spiking up to 9219.59 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on June 23rd, DJT lost -3.07% on the following trading day.
The index shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 9229.54 where further buy stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Dow Trans.. Out of 331 times, DJT closed higher 56.80% 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 60.12% with an average market move of 0.55%.