#DOWJONES – LOOK AT THE POSITIONAL CHART DEVELOPMENT – TECHNICAL VIEW

“TRADING WHITEOUT LEVELS IS LIKE, DRIVING THE CAR IN NIGHT WITHOUT HEADLIGHT – EVEN IF YOU ARE A GOOD DRIVER ALSO, BUT YOUR SMALL MISTAKE CAN MEET YOU WITH AN ACCIDENT”

in our last post on dowjones we clearly mention that if it able to break 15400 level then we can see falling dow jones, and just see exatly happen like that, dow fall till 14880 from 15400 almost 520 points move.

dow jones view for upcoming days –

as per the technical chart reading in dow jones we can see two trend line on chart which are most and more important support level at present, it has broken the 1st support line which is a long term support, but then again we can see that it has taken the support on another trend line which can indicate the consolidation phase in market.

overall RSI study indicate that RSI already able to move in oversold zone now, which is almost after 10 months time, so we should not ignore this, as this carry very important and sensitive signal for American market.

another thing we can assume is, there is a “POSITIVE DIVERGENCE” on chart but still we cant confirm it, till it not able to move above its resistance line which was previously long term support line for it.

so overall dow jones chart study indicate that, its having massive support in a range of 14750-14850 and till its not breaking this range we cant assure about the major fall in US markets, going below this range can give us a target levels of 14500-13800-12800 levels, but if it not able to break this support and able to move above resistance line then again up move to seen market. upper side 15100-200 range looking major resistance now.

if any reversal from here can take dow joens till 15100-200 range as a correction of recent fall, and only above 15200 level it will try to continue its original trend which is positive.  but if it face resistance at 15200 and then it again try to break the lower levels then below support level we again expect a massive fall in index.

all this process will take its own time to decide the trend, so don’t make decision on market timings but make decision on market levels, which ultimately decide the market direction.