DOW JONES INDUSTRIAL AVG INDEX- A TECHNICAL UPDATE-27-1-2017

DOW JONES INDUSTRIAL AVG INDEX

CLOSED AT: - 20100.91 ON 26-1-2017.

                                                                           

SUPPORT:-

19999—19973/19966.43/19872.86/19762.60/19718.67/19677.94/19623.19/19558.42.

 RESISTANCE:-20230/20300/20530/20680/20905/21050/21300.

(Figures in bold are important)

It is on a very sound technical footing now. It consolidated in the range of 19999.63---19677.94 for quite some time and then given an upside breakout on 25-1-2017 which is good sign and indicates that further rise ahead provided it holds its multiple top breakout range of 19999—19973, then its most critical benchmark points of 19872.86 & 19762.60 for the year 2017 and finally the recent multiple bottom range which is between 19748—19677. So broadly it has bed of support in the range of 19999---19677 and only sustained break below 19677 can put it into a deep corrective mode which may please be noted. But be alert in long trade below the yearly benchmark points also.

It is important to mention here that overall it is the market for the  long trade but be circumspect in fresh long trade below the breakout range of 19999—19973 and avoid long call completely  below its multiple bottom range of 19748--19677. In view of this observation it seems prudent that long call can be tried above or within the breakout range of 19999—19973 with a stop loss of below 19920 and then near or within the multiple bottom range of 19748—19677 but not below 19677 with a stop loss of below 19620. But I once again repeat that it would be safe to try long call above the breakout range of 19999—19973 only.   

     

 Kindly note that as it is in uncharted territory now therefore the upside target could be 20230/20300/20530/20680/20905/21050/21300 based on Fibonacci Retracement Points and up channel resistance points.

 REMARKS: - Technically it is tremendously strong at this point of time and no doubt it the market for long trade, but it is suggested to try long call above the breakout range of 19999—19973 only at this point of time.  

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.

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.

Note: Price stated here is of spot market.

Contact me for strategic guidance to enter and exit the trade.