DJT climbs to highest close since June 8th
Dow Jones Transportation Average Index (DJT) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, DJT finished the month 8.96% higher at 9994.81 after gaining $87.33 (0.88%) today. Today's close at 9994.81 marks the highest recorded closing price since June 8th. Trading up to $190.51 lower after the open, Dow Trans. managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 9951.77, the stock index confirmed its breakout through the previous session high after trading up to $82.47 above it intraday.
Daily Candlestick Chart (DJT as at Jul 31, 2020):
Friday's trading range has been $354.14 (3.59%), that's far above the last trading month's daily average range of $167.63. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DJT.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on July 14th, DJT actually gained 2.88% on the following trading day.
Prices are trading close to the key technical support level at 9897.34 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further buying might move prices higher should the market test June's close-by high at 10096.18.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Its common bullish interpretation has been confirmed for Dow Trans.. Out of 91 times, DJT closed higher 54.95% 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 59.34% with an average market move of 0.53%.