This is a WEEKLY chart. Each candle represents one week of price activity.
Although I don't typically trade the DJI, the major media outlets publicize "The Dow" levels every day. I think this chart is important for the average investor.
In 2013, The Dow got to the 16,000 level. Ever since then, the 16,000 level has been support. You can see that in Oct 2014, Aug & Sept of 2015, and Jan 2016 this 16,000 level is where The Dow turned higher after a decline.
Round numbers show up in many places in investing. They should be respected and they should be considered. Keeping this discussion simple, a round number may wind up being the place where The Dow shows us support again.
The Dow has already given up the level it was at when the current president (Pres #45) became president. That is 3+ years of market gains given back in a four week period of time... If you ask me, that says a lot about how "strong" the economy has been. I could go on for a bit about this topic. But I won't. Let me just say that you can't only listen to the narrative from politicians about the market & the economy. You have to pay attention to details. Pay attention to charts. It is a learning process. It will take time. It will feel like a college class that you fell behind in. But no one can pay attention to your money like you can...
How low will The Dow go? Honestly. I have no clue. All I can do is pay attention to the past and look for clues about the future. No one can answer this question for you. You just have to pay attention to some details.
Dow 18,000 is a place that The Dow met resistance and then some time later found support. Dow 16,000 is a place that The Dow didn't find much resistance but it found support many times. Is there a clue in here about where The Dow will find support. Maybe.
I have never been a part of history where our economy has shut down. I watched the tech bubble burst but I wasn't investing at the time. It is so hard to fathom that our government has chosen to shut down the economy... It is also hard to fathom how low The Dow will go because of the decisions our government has made.
Let's hope that The Dow turns around somewhere between where it is today and 16,000. Let's watch the chart for more clues. Clues like an inside week that resolved to the upside. Clues like a weekly candle with a higher high and a higher low than the last weekly candle. Clues like a weekly candle that dips below the previous candle's low but then closes the week above the previous candle's low. These are only clues. They are not tell tale signs of a clear turn in the market. Keep watching. Keep learning. Don't give up. This may be another on of those "best time to buy stocks in our lifetime" moments. Then again, it could be something else...
Although I don't typically trade the DJI, the major media outlets publicize "The Dow" levels every day. I think this chart is important for the average investor.
In 2013, The Dow got to the 16,000 level. Ever since then, the 16,000 level has been support. You can see that in Oct 2014, Aug & Sept of 2015, and Jan 2016 this 16,000 level is where The Dow turned higher after a decline.
Round numbers show up in many places in investing. They should be respected and they should be considered. Keeping this discussion simple, a round number may wind up being the place where The Dow shows us support again.
The Dow has already given up the level it was at when the current president (Pres #45) became president. That is 3+ years of market gains given back in a four week period of time... If you ask me, that says a lot about how "strong" the economy has been. I could go on for a bit about this topic. But I won't. Let me just say that you can't only listen to the narrative from politicians about the market & the economy. You have to pay attention to details. Pay attention to charts. It is a learning process. It will take time. It will feel like a college class that you fell behind in. But no one can pay attention to your money like you can...
How low will The Dow go? Honestly. I have no clue. All I can do is pay attention to the past and look for clues about the future. No one can answer this question for you. You just have to pay attention to some details.
Dow 18,000 is a place that The Dow met resistance and then some time later found support. Dow 16,000 is a place that The Dow didn't find much resistance but it found support many times. Is there a clue in here about where The Dow will find support. Maybe.
I have never been a part of history where our economy has shut down. I watched the tech bubble burst but I wasn't investing at the time. It is so hard to fathom that our government has chosen to shut down the economy... It is also hard to fathom how low The Dow will go because of the decisions our government has made.
Let's hope that The Dow turns around somewhere between where it is today and 16,000. Let's watch the chart for more clues. Clues like an inside week that resolved to the upside. Clues like a weekly candle with a higher high and a higher low than the last weekly candle. Clues like a weekly candle that dips below the previous candle's low but then closes the week above the previous candle's low. These are only clues. They are not tell tale signs of a clear turn in the market. Keep watching. Keep learning. Don't give up. This may be another on of those "best time to buy stocks in our lifetime" moments. Then again, it could be something else...
