Technical analysis on to buy or sell?

Screening Filters

1. is_index_component: ['DJI']

   • Purpose: Limit results strictly to Dow Jones Industrial Average (DJIA) constituents.
   • Rationale:
     • Your question is about the DJIA and whether to buy or sell, so the relevant universe is the 30 stocks that make up the index.
     • By focusing only on DJIA components, the analysis aligns directly with the index’s behavior and helps you see which individual names may be driving a bullish or bearish tilt.

2. moving_average_relationship: ['PriceAboveMA20', 'PriceAboveMA200']

   • Purpose: Identify DJIA stocks in established uptrends (price above both short-term and long-term moving averages).
   • Rationale:
     • PriceAboveMA20: The 20-day moving average is a short-term trend gauge. Price above the 20‑day often signals that near-term momentum is positive and buyers are currently in control.
     • PriceAboveMA200: The 200-day moving average is a widely watched long-term trend line. Price above the 200‑day typically indicates a longer-term uptrend and reduced downside risk versus stocks trading below it.
     • Together, these pick out DJIA constituents with both short- and long-term bullish structure, which is directly relevant when deciding whether conditions favor “buy” rather than “sell.”

3. macd: ['positive', 'bullish']

   • Purpose: Capture DJIA stocks with MACD confirming upside momentum.
   • Rationale:
     • MACD positive: A positive MACD line usually means the short-term moving average is above the longer-term one, supporting an uptrend.
     • MACD bullish (often meaning a recent bullish crossover or histogram strengthening): Signals that momentum is not just positive but improving.
     • Since you are trying to determine buy vs. sell, bullish MACD conditions help identify names where upward momentum is intact or accelerating, rather than weakening.

4. rsi_category: ['moderate']

   • Purpose: Focus on DJIA stocks that are not overbought or oversold, i.e., in a healthier, more sustainable zone.
   • Rationale:
     • A “moderate” RSI range (roughly in the middle, e.g., 40–60 or 45–65 depending on the definition) means price isn’t stretched too far up or down.
     • For buy/sell decisions, this avoids:
       • Overbought names, where a pullback risk is higher.
       • Oversold names, where trend may still be down or unstable.
     • This filter points you toward technically constructive setups where entering or holding positions might have a more balanced risk-reward profile.

5. month_price_change_pct: {'min': '0'}

   • Purpose: Ensure the stock has at least non-negative performance over the last month.
   • Rationale:
     • A minimum 0% one‑month change means prices have been stable to rising recently, consistent with an uptrend rather than a short-term downtrend.
     • With a buy/sell question, this helps sidestep names that are technically strong on longer-term measures but currently experiencing a short-term correction.

Why Results Match Your Question

• You asked for technical analysis on the DJIA to decide whether to buy or sell. These filters:

  • Restrict the universe to DJIA components, which are what determine how the index behaves.
  • Select only those components that are in confirmed uptrends (above 20- and 200-day MAs) with supporting momentum (positive, bullish MACD).
  • Exclude names that are overstretched (via moderate RSI) or recently weak (non-negative 1‑month performance).

• Collectively, this creates a subset of DJIA stocks that are technically aligned with a “buy or hold” bias, as opposed to “sell,” helping you infer whether the index environment and its key constituents are more bullish or bearish from a technical standpoint.