DOW JONES INDUSTRIAL AVERAGE--A Technical View-30-8-2015

Dow Jones industrial Average

Closed at :-16643.01 on 28-8-2015

After 8-9 months of distributions it has given downside breakout from the flag pattern bottom of 17037.76 and went down by more than 1650 points in just three trading session and hit a low of 15370.33 and in this process it has broken all its short and long term moving averages decisively which indicate huge weakness in it and further fall ahead, however in between short up rally cannot be ruled out and the same is happening now but it seems difficult to sustain. Long term up trend is severely threatened or may be over.

Furthermore huge negative divergence is visible on weekly and monthly chart and if it could come into play it can drag down the Dow below 15000 mark very soon, chances of which are looking very bright at this point of time.

Going down the bottom support point are at 16333/16015/15855/15340/14719.

Moving up it will encounter resistance at 17037 & 17067. It is well below its long term moving averages on the daily chart and the long term moving average support on the weekly chart is in the range of 16546---16170---15085 now(it keeps on changing every day). So 15000 could be considered as good support area but if it fails to hold this or after breaking this level fails to move above it again then fresh fall will be triggered and that can drag it down to much lower levels. Dow is badly placed on the chart.

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.

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