Technical Analysis of the Dow Jones Industrial Average Index
At the beginning of this month, Dow tested its 50 day moving average successfully and
moved up 300 points from there. The technical indicators in daily chart are being moved into buy mode
with rsi breaking its downtrend line and macd about to make a positive crossover.
However, if one looks at the weekly chart of dow, RSI broke the uptrend line and there is strong
negative divergence in macd. Therefore traders must exercise caution on both long as well as short
swing trades.
In the coming week, fibonacci confluence zone for dow is placed at 9870 level.
Managing to trade above this level, DOW can move up to targets of 10,200, 10,330 and 10, 420.
A close below 9870 for DOW will trigger a collapse to the extent of 9570, 9450, 9350.
DOW is placed precariously. Let us see what the next trading week brings.
Disclaimer : This is not a recommendation/ solicitation of any order to buy or sell, but Jerry’s view on indian stock market. I assume no responsibility for any opinion or statement made in this blog. Readers are urged to exercise their own judgment in trading. Readers shall solely be responsible for profit/loss.
Day Trading the Indian Stock Market 