Dow has put in a lower low and reversed back into the range. It stalled at the monthly R1 pivot on Friday after a strong rally, but the next objective now is to make a higher high at the 27300 mark to complete both broadening formations and hit the MR2 pivot.
The dow bull market is over, the coming recession will cause the initial dip in the Dow which will correspond nicely with the upward lower bound trend and fibonacci retracement of around 22000. Then I'd expect a lower target of around the 50% retracement level of 16000 which will be at the height of the next US recession.
(Monthly chart is used)
The Dow Jones Industrial Average could be due for a major reversal soon because of the following reasons:
1) There is a triple top forming
2) RSI on the monthly chart is showing a severe loss in strength shown by 2 lower highs whilst price makes a triple top (aka bearish divergence).
3) MACD lines have crossed over indicating a reversal in...
With the decline from the YR1 pivot price has moved to the 5 month POC. Volume profile shows a positive skew with several HVN of support at 25000 and 24600 as price has built value on the rally. Price will move quickly through the low volume nodes to the next level down if these levels break. With the latest aircraft crash from Boeing, which is the Dow's heaviest...
DOW JONES HAS BEEN OVERBOUGHT IN ALL TIME FRAMES SO THIS DIP WAS COMING AND ITS NO SURPRISE. THE FUNDAMENTALS ARE STILL VERY BAD WITH DOW TRANSPORTS LOSING 11 TRADING DAYS IN A ROW IS A SIGN OF THINGS TO COME
DOW - Basic trend analysis shows long-term trend-line BROKEN. Bearish momentum is fully confirmed by market structure breaking to create LOWER-LOWS. A severe sell-off occurred which has been highlighted in BLUE with a bounce at support. Bullish continuation is NOT confirmed as market structure is now creating LOWER-LOWS
Not normally the way I analyse charts but,...
The chart for the Dow Jones (DJI) is basically the same one as the S&P 500 (SPX). So needless to say, this one will crash as well.
My long term analysis for DJI is still valid, you can see it here:
This new crash that is incoming is just an extension of...
Waiting to go short. After rejection in the resistance zone around 25,000
Target is back to previous bottom . If that hold then market sentiment turn bullish.
Also if price push through the resistance zone with strength and out of the channel. Then market sentiment changes to bullish after next higher low bottom
End of year buying and oversold conditions contributing to a long awaited bounce - but where does it get to?
DOW daily chart
Pretty much self explanatory
But some key levels:
Bounce target = previous support 24236 - which coincidentally is the 61.8 % Fibonacci retrace of the downtrend from 3/12/18.
Possible medium term scenario: (very rough !)
1 rally to...
After looking at the 08 crash , I extrapolated the percentage loss and applied it the 25,000 peak double top seen in 2018 - this is not really based that much on fundamentals 1. nike beat earning popped 7% dropped then followed the general pattern of the market)
- some could argue that a bigger percentage loss is possible , due to corporate debt mainly,
As noted in the chart provided, the downtrend persist but that can change sooner than later. The chart shows that November 1st will be a key day, for the reason I will explain below.
The weekly DJI chart shows a bear market trend with oversold Relative Strength Index (RSI) and near to support levels. Also, as noted in the chart weak hands have not been washed...