DJT dominated by bulls lifting the market higher throughout the day
Dow Jones Transportation Average Index (DJT) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, DJT finished the week 0.37% higher at 11880.13 after gaining $131.58 (1.12%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 11832.65, the market confirmed its breakout through the previous session high after trading up to $58.56 above it intraday.
Daily Candlestick Chart (DJT as at Oct 23, 2020):
Friday's trading range has been $140.92 (1.2%), that's below the last trading month's daily average range of $200.24. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DJT.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on October 15th, DJT actually lost -1.27% 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 nearby swing high at 12013.69 where further buy stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Dow Trans.. Out of 151 times, DJT closed higher 54.97% 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 64.90% with an average market move of 0.91%.