DOW SEEMS TO HAVE TOPPED OUT AT 17350.64

DOW JONES INDUSTRIAL AVG INDEX CLOSED AT 16544.10 ON 10-10-14

SUPPORT:- 16341.30 / 16333.78 / 16312.66 / 16015.32 / 15703.79 / 15340.69.

RESISTANCE :- 16590 / 16735.51 / 16970 / 16978 / 17074.65 / 17152 / 17162 / 17350.64.

(Figures in bold are important)

The technical chart is showing tremendous weakness and it seems that Dow has topped out  at 17350.64 on 19-9-14 however in between pull back rallies will be there but eventually it will seek lower levels in coming days if it has topped out, as of now the good support for it exist at 16333 & 16015. Kindly note that  to resume the uptrend again it has to move above 17350.64 mark as soon as possible and stay , chances of which are looking very remote at this point of time because of the following reasons.

1. It has broken the very important support area of 16590—16572 after a long time.

2. It is below all its short and long term moving averages and certain averages are on the verge of giving negative crossover.

3. It is showing huge negative divergence on the weekly chart which suggest that it may test the range of 15698--14810 in near future, if it does not improve from here .

4.Technically all parameters collectively indicate that  it may be the beginning of a bear market, if yes it may seek lower levels from here in days to come, if not then  it has to get past the mark of 17350.64  in the fastest  possible time .

..REMARKS:-Long term uptrend is threatened and it seems that  it may be the beginning of a bear market. I strongly feel that there is potential indication technically that it is the beginning of a bear market, therefore I suggest to  adopt  sell on rise strategy with an adequate stop loss. Please use support and resistance level as entry, exit and target points and also as trailing stop loss in favorable trade. Volatility could be there so trade cautiously and DO NOT TRADE WITHOUT STOP LOSS.

 NOTE:-

1.PRICE STATED HERE IS OF SPOT MARKET.

 2. RECOMMENDATIONS ARE VALID TILL THE STOP LOSS IS TRIGGERED.

 3. IN FAVORABLE TRADE TRAIL YOUR STOP-LOSSES FOR MAXIMUM GAIN AND

    CAPITAL  PROTECTION .     

                  

 Contact me for strategic guidance to enter and exit the trade