DOW JONES INDUSTRIAL AVG INDEX-Technical Observation---11-1-2015

DOW JONES INDUSTRIAL AVG INDEX CLOSED AT 17737.37 ON 9-1-2015

SUPPORT:- 17726.55 / 17666—17589---17512—17416 / 17350.64 / 17262.37 / 17151.56 / 17067.59 / 16674 / 16540.

RESISTANCE: - 17824 / 17916.04 / 17991.19 / 18103.45 / 18640.

(Figures in bold are important)

Dow has been highly volatile in last couple of months, to be precise from Sept-2014 and giving wild swings quite often but now showing some sign of exhaustion at the upper level although the up -trend is still intact. It made a rounding top at 18103.45 on 26-12-2014 and then made a bottom at 17262.37 on 6-1-2015 and thereafter moved up again and supposedly made a top at 17916.04 on 8-1-2015, if this top is held then it will be a lower top after a long gap of time which will be a potential indication of it going into reasonable to significant correction in coming days. Please note that DOW will gain real strength and resume uninterrupted and smooth up run only if it moves above 17824 and sustain it for some time and then crosses 17916.04 level.

It is important to mention here that the long term moving averages for it at present is in the range of 17270—16903(it changes every day), violation of the upper band of the range will be the first sign of threat to the up- trend and break below the lower band will spell real danger to the long term up-trend,therefore if the up- trend has to stay then it cannot remain below even the upper band of the moving averages range for a longer period. So be watchful if  it falls within this  range.

   

REMARKS:-Long term up - trend is still intact. But it is showing sign of exhaustion at upper level and will ensure smooth up run only if it moves above 17824 and stays for some time and then crosses 17916.04 mark.The long term up trend would be threatened below 17270.

Kindly note that make your cost your stop loss in favorable  trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS.

Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view.

Note: Price stated here is of spot market.

Contact me for strategic guidance to enter and exit the trade.