DJU pushes through Wednesday's high
Dow Jones Utility Average Index (DJU) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, DJU ended Thursday at 757.92 gaining $59.96 (8.59%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 726.07, the stock index confirmed its breakout through the previous session high after trading up to $40.46 above it intraday.
Daily Candlestick Chart (DJU as at Mar 26, 2020):
Thursday's trading range has been $70.81 (10.16%), that's far above the last trading month's daily average range of $52.45. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for DJU.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, DJU gained 3.57% on the following trading day.
Prices are trading close to the key technical resistance level at 773.49 (R1).
Though the index is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the nearby swing high at 773.49 where further buy stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Dow Util.. Out of 191 times, DJU closed higher 57.59% 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 57.59% with an average market move of 0.16%.