DJU closes higher for the 2nd day in a row
Dow Jones Utility Average Index (DJU) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, DJU ended the week 1.04% higher at 893.68 after gaining $2.40 (0.27%) today. Today's close at 893.68 marks the highest recorded closing price since March 6th. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (DJU as at Oct 23, 2020):
Friday's trading range has been $7.21 (0.81%), that's far below the last trading month's daily average range of $12.68. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DJU.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on Wednesday, DJU actually gained 1.62% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Dow Util.. Out of 164 times, DJU closed higher 64.02% 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 68.29% with an average market move of 0.84%.