Central banks flood the market with cheap money.
Conclusion major indices are rising in value and creating bubbles which are going to burst soon or later.
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 market is going through a period of volatility due to upcoming interest rate rises. Traders should see this volatility as a profitable opportunity. The risk/reward is great. The market sentiment is the same now as it peaked the last time in January, and a reduced, but still relevant correlation to the chart topping action in December. From a long term point of...
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....
Technicals
The first red support line has been breached as the DOW managed to close beneath it (Red Circle). As you can see the Stop Loss is just above previous shadows which is only around 70 points compared to a profit margin of around 550 points a good 8:1 ratio in earnings:loss. Also according to the Stochastic s, the bear market triggered once it closed...
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...
Hello everyone ! We can expect a down trend on the DJ soon. Moving averages 40 & 140 are going to cross and prices want to break the ascending support (black line). This index could reach 17320 points next week !
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...
