DJT climbs to highest close since June 8th
Dow Jones Transportation Average Index (DJT) Technical Analysis Report for Aug 03, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, DJT ended Monday at 10011.72 edging higher $16.91 (0.17%). Today's close at 10011.72 marks the highest recorded closing price since June 8th. 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 Aug 03, 2020):
Monday's trading range has been $121.28 (1.21%), that's below the last trading month's daily average range of $168.27. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DJT.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on July 24th, DJT actually gained 0.90% on the following trading day.
Prices are trading close to the key technical resistance level at 10096.18 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Trading close to June's high at 10096.18 we could see further upside momentum if potential buy stops at the level get activated.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Dow Trans.. Out of 92 times, DJT closed higher 52.17% 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 56.52% with an average market move of 0.25%.