DJT closes higher for the 4th day in a row
Dow Jones Transportation Average Index (DJT) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, DJT ended Wednesday at 11555.14 gaining $78.18 (0.68%). Today's close at 11555.14 marks the highest recorded closing price since September 14, 2018. Trading $58.50 higher after the open, the index was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on September 10th, DJT actually gained 0.93% on the following trading day.
Daily Candlestick Chart (DJT as at Sep 16, 2020):
Wednesday's trading range has been $149.20 (1.28%), that's slightly below the last trading month's daily average range of $184.42. Things look different on the weekly timeframe, where the market's trading range of the last week has been above 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 Black Candle.
Prices are trading close to the key technical support level at 11488.70 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Dow Trans.. Out of 330 times, DJT closed higher 53.64% 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 59.70% with an average market move of 0.61%.