DOW JONES INDUSTRIAL AVG INDEX- A TECHNICAL UPDATE-29-4-2016

DOW JONES INDUSTRIAL AVG INDEX-

CLOSED AT 17830.76 ON -28-4-2016.

                                                                           

SUPPORT:- 17811.48/17796.76/17750.02/17484.23/17425.03/17405.48/17399.01/17210/17116.73/16887/16827.86/16510.40/16165.86/15979.95/15942.37/15803/15503/15450.56/15370.33/15340.69/14760/14719.43/14681/14551.27/14444.03.

 RESISTANCE:- 17914.34/17977.85/18084.66/18167.63/18188.81/18351.36.

(Figures in bold are important)

When I, last wrote on 16-4-2016 it was bracing for a big move on the either side. It did go up from there but failed to cross the upper band of the resistance range which was between 17800—18352(see my post of 10-4-2016). It slipped down after hitting 18167.63 on 20-4-2016, now it is showing sign of fatigue; it is also making lower top and bottom on the bar and the line chart, so either it is correcting before resuming the up move again or the on-going up move may be over. The technical setup is still good but certain technical indicators point towards a possible down slide from here, however as long as it holds the critical levels of 17425.03 & 17405.48 for the year 2016 the up move may be in place, furthermore even if it breaks the aforesaid points it will get very good support from its long term moving averages which are in the range of 17332—17006(it changes every day). Therefore only sustained close below 17000 can trigger a bigger fall. Since it is having good support in the range of 17425—17006, so long call can be tried on dip around this range but not below 17332 with proper stop losses.

REMARKS:-The trend is up. But it is in correction mode now so let it give visible indication of correction completion before initiating fresh long trade. However, long call can be attempted around the range of 17425---17332.

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.