DOW JONES INDUSTRIAL AVG INDEX- A TECHNICAL UPDATE-1-3-2016

DOW JONES INDUSTRIAL AVG INDEX-

CLOSED AT 16516.50 ON -29-2-2016.

                                                                           

SUPPORT:-16510.98/16165.86/15979.95/15942.37/15503/15450.56/15370.33/15340.69/14760/14719.43/14681/14551.27/14444.03.

 RESISTANCE:-16795.98/16933.43/17037.76/17067.59/17116.73/17138.47/17210.43/17350.64/17568.40.

(Figures in bold are important)

It went up by more than 800 points since I wrote last (see my post for 18-1-2016) but technically it is still on a very weak footing, as it is still way below its long term rising trend line drawn from the bottom of 6469.95 which is now  at 17110 (it keeps on rising every day), it is below all its long term moving averages on the daily chart since 4-1-2016 and the last such averages is placed at 16842(it changes every day) for 1-3-2016,it has violated some of its long term moving averages on the weekly chart also which speaks of gross weakness in it. Furthermore a Head & Shoulder pattern is in the making on the bar chart therefore it seems that the on-going up move may not go beyond 16933.43 level if this pattern  has to accomplish and eventually if this comes into play then it could see severe price damage in coming weeks/months which may be kept in mind. Please note that if this pattern fails even then it will gain strength only if it moves above 17350 and sustain, which seems difficult at this point of time. Therefore as of now the level of 16933.43 is important to watch out. In view of the above it seems that the on-going up move is either over or near exhaustion therefore it is suggested to avoid long call for now. Please note that the overall bias is on the downside.

REMARKS:-The trend is down and in view of the above observation it seems that the on-going up move is either over or near completion, therefore it is advised to avoid long call now.

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.