DOW JONES INDUSTRIAL AVG INDEX ( A TECHNICAL VIEW) 5-4-2015

DOW JONES INDUSTRIAL AVG INDEX

CLOSED AT 17763.24 ON 2.4-2015

Dow is showing weakness on the technical chart and making lower top and bottom now and also giving whip saw for some time over the critical points of 17823 and 18103.45 which is creating doubt whether the top is already in the place at 18288.63, however if it has show strength and resume the up momentum again then it has to close above these points and sustain and eventually cross 18288.63 mark, chances of which are looking slim at this point of time.

The long term up trend is still intact till it maintains above the long term moving average range which is between 17657—17254 for 6-4-2015(it changes every day with price movement and now it is moving up) and it not far away from this range and coming closer to this range is concerning .Please note that break below the upper band of the range ie 17657 will threaten the long term up trend and break below the lower band ie 17254 and  consistently trading below this mark will end the up -trend, therefore even if it breaks these level it should not stay below these levels for a long time if long term up-trend has to continue. In view of the above the short range for it is between 18103.45----17657 and broad range is between 18288.63---17254.

Furthermore now it is running below its short term moving average range therefore it is suggested to avoid long trade till it moves above this range which is between 17870---17798 for 6-4-2015(it changes every day with price movement and now it is moving down) .

In overall technical view it seems that it is precariously poised and on the verge of make or break, therefore it is suggested to respect the above mentioned levels and act accordingly. My bias is on the downside now, so I would prefer to avoid long trade now instead I would look for an opportunity to go short.

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.