DOW JONES INDUSTRIAL AVG INDEX- A TECHNICAL UPDATE-10-4-2016

DOW JONES INDUSTRIAL AVG INDEX-

CLOSED AT 17576.96 ON -8-4-2016.

                                                                           

SUPPORT:-17484.23/17425.03/17405.48/17399.01/17210/17116.73/16887/16827.86/16510.40/16165.86/15979.95/15942.37/15803/15503/15450.56/15370.33/15340.69/14760/14719.43/14681/14551.27/14444.03.

 RESISTANCE:-17750.02/17796.76/17811.48/17914.34/17977.85/18137.12/18188.81/18351.36.

(Figures in bold are important)

It was technically weak when I wrote last on 1-3-2016 but since then it surged by more than 1300 points which is phenomenal. Please note that technical parameters changes with the price movement therefore regular monitoring of chart is very essential for the correct assessment and forecasting. Although it is still looking good on the  technical chart but at this juncture it seems that either it may be consolidating or showing some sign of fatigue for a down correction before it resumes the up move again.

Please note that the on –going up rally which started from 15503.01 on 11-2-2016 had vertically moved up by more than 2300 points and made a high of 17811.48 on 1-4-2016 of this up run but now is in a corrective or consolidating mode, it could be exhaustion also because certain technical indicators points towards a possible downside from here, so be careful. However as long it holds 17425.03 & 17405.45 levels which are very crucial points for the entire year of 2016, chance of resuming up move again is still there. Therefore long call can be tried near these levels but it is suggested to avoid long call completely if it gives sustained close below 17405.45. However  even if it breaks below the aforesaid  levels it will find very good support from its long term moving averages which are placed in the range of 17219—16900 now (it changes every day) but sustained close below the lower band of the long term moving averages may accelerate the fall. Similarly moving up it will face very stiff resistance in the range of 17800—18352.So take your trading call keeping the above points and range in mind. I once again repeat to avoid long call below 17425&17405 for sure.    

REMARKS:-The trend is up. But in view of its present movement it is suggested to watch it for a day or two and see how it pans out before taking a trading call.

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.