DOW JONES INDUSTRIAL AVG INDEX -(Precariously Poised)--1-2-2015

DOW JONES INDUSTRIAL AVG INDEX CLOSED AT 17164.95 ON 30-1-2015

SUPPORT:- 17136 / 17067.59 / 16430 / 16333.78 / 16312 / 16015 / 15855 / 15703.

 RESISTANCE: - 17350.64 / 17434 / 17823.50 / 17840 / 17923.01/ 17991.19 / 18103.45.

(Figures in bold are important)

Dow is looking extremely weak on the chart now, off late it is making lower top and lower bottom and running way below its short term moving averages and also below some of its long term moving averages, the range for long term moving averages is between 17348—16950(it changes every day) for 2-2-2015,since it is below the upper band of the range so there is a threat to the long term up trend if it does not bounce back above it, and if it moves below 16950 and stays then the long term uptrend will be in real danger, chances of breaking 16950 looks reasonably high in coming days ,however in between up rally cannot be ruled out. Please note that it will gain real strength only if it stays above 17824.The intermediate trend is down and it is correcting now and the possible levels from where it can bounce are 16970 / 16700 / 16380.

Technically making lower top and lower bottom, it is below all its short term moving averages and it is inching towards giving negative crossover, it is also below the upper band of the long term moving averages, furthermore there is a negative divergence in RSI indicator on the monthly chart and MACD is in sell mode on Daily, Weekly & Monthly chat, therefore the overall technical parameters are not encouraging at all. I would therefore advice to avoid long call completely till it gives visible sign of correction completion instead short call can be tried either on the rise or below 17130 with a stop loss of above 17170 for a target of 16970& 16700.Please avoid long call below 17136 for the entire month of February-2015 because below this mark it can seek much lower levels.

REMARKS:- It is in intermediate down trend and correcting now, so long trade is completely ruled out till visible sign of correction completion emerges. It is advised to try short call below 17130 with suggested stop loss and avoid long call below 17136 for sure for the entire month of February-2015.

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.