Levels on chart, estimated time for the downtrend conclusion is August 14th.
I'll be monitoring the support levels below to go long.
The boxes represent the earnings season range and I plotted the 50% level, as depicted in Tim West's publications. You can clearly see the reaction to it in the chart.
I also added the 66, 253, 50 and 200 EMAs as well as the options...
Dow has been in a long term uptrend and has been squeezing up between trend lines that it has been bouncing up and down. The question is will it continue doing so and if yes for how long as the space is almost squeezed out. The next deciding level for DOW is around 18550 to 18700. That is when it has to decide either to break out, continue consolidation by going...
A very strong resistance for DOWI at 18610 and a clear HS pattern forming !! Go short around 18610 and add more at 18793 for targets of 17063 and then a rebound till 18000 !!
The primary trend on the Dow Jones Industrial is bullish. Intermediate is neutral (for now) and the minor trend is bullish. Since the santa rally of 2014, the DOW has experienced a sideways distribution phase, which was choppy and volatile. If the DOW closes above 17,959.87 I will have a bullish perspective and only get into protective puts to protect against pull...
Charts are telling us to be very cautious, as soon as we get the 1st dip in the RED line below zero mark, we shall expect a convincing bounce only to find more panic ahead. ONLY time will tell when we get that scare drop....
Considering where we are today, probability of making significant NEW HIGH is very LOW, however a marginal NEW HIGH cannot be rules out....
We are now in unfamiliar territory.
The MACD technical indicator Moving averages has crossed over above 120 points 22 times since 2003.
Of those, 22 times, 19 of them led to at least a mild pullback within a month.
3 times it moved sideways or down where no money could have been made at all within one month.
The MACD has crossed over 200 points 6 times...
Trading near the channel and the neckline resistance, Short term trend is down and any recovery may face sell offs again. Yes there is short covering or fresh buying seen from lower levels but I feel with smaller stops this trade is worth taking a chance.
Regards,
SP
CapitalTA
DAX Resistance
The DAX is currently in a very strong resistance zone. In fact many of the largest stock indices are also in the same position please also see my trade on the FTSE (Global Equities Turn-Around)
It has touched this level 2 other times this year, we have seen several retracements on the dax this year and this seems to be where it stops the...
Here is my logic:
1. Fundamentals don't support record highs. High stock prices don't represent real economic activity. Unemployment. situation still not pre-crises levels yet prices are way above that.
2. Oil showing lack of demand.
3. US dollar becoming more expensive. End of low exchange rate.
4. China weakening as well as imports.
5. End of easy money and fed...
This chart and my conclusion based on my analysis might be very perplexing to many Fundamental Analysts and to Japan's Prime Minster Abe as net results of his 3 prong attack fails to produce desired results.
Many, bullish fund managers will be mystified as was the case in 1992 when the initial decline of all time high was only seen as just a setback and a buying...
