Dow Jones Industrial Average (.DJI) Record High On China News As This Key Stock Breaks Out

Dow Jones Industrial Average (.DJI) Record High On China News As This Key Stock Breaks Out

Dow Jones Industrial Average (.DJI) Record High On China News As This Key Stock Breaks Out

The Dow Jones industrials soared 0.9%, the Nasdaq rose 0.8% and the S&P 500 gained 0.6%. Small caps tracked by the Russell 2000 were up nearly 0.7%. Volume was tracking lower on both exchanges vs. the same time Wednesday.

Stocks rose early, sending the key indexes to fresh highs after China said it reached an agreement with the U.S. to phase out existing trade tariffs. The Dow surged as much as 269 points and was holding near its session highs.

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 26,871.27.

The projected upper bound is: 28,251.37.

The projected lower bound is: 27,163.78.

The projected closing price is: 27,707.57.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 8 rising windows in the last 50 candles–this makes the current rising window even more bullish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 87.7133. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 10 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 69.10. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 66 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 149.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 5 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 18 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 182.240 at 27,674.801. Volume was 2% above average (neutral) and Bollinger Bands were 22% narrower than normal.

Open     High      Low     Close     Volume___
27,590.16027,774.67027,590.16027,674.801 263,577,152
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 27,282.26 26,863.71 26,271.12
Volatility: 8 13 15
Volume: 268,640,672 251,754,480 277,270,592

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

DJ INDU AVERG gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
DJ INDU AVERG is currently 5.3% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of .DJI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .DJI and have had this outlook for the last 5 periods.

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