DOW JONES INDUSTRIAL AVG INDEX(A TECHNICAL VIEW)-12-10-2018

DOW JONES INDUSTRIAL AVG INDEX

CLOSED AT 25052.83 ON 11-10-2018

SUPPORT:-24876.07—858/24809.35/24719.72/24247.89/24217.75/24195.85—066/23997.21/23828.73/23531.31/23360.29/23344.52.     

                            

RESISTANCE:-25402.83/25449.15/25587.24/25692.72/25754.32/25807.35/26030.35/26167.94/26349.34/ 26616.71/26769.16/26951.81/27060/27530.

(Figures in bold are important)

Further to my last post of 8.10.18 as envisaged it corrected sharply and in last two trading session it plunged down by more than 1370 points breaking all short, medium and long term moving averages except for the few long term averages, the complete long term moving average range is between 25420---24817 for today (it changes every day).Furthermore its critical points are 24876.07/24809.35 & 24719.72 for the year 2018.

 Kindly note that despite, the massive fall it is still within its long term moving average range and above its critical points. Therefore as long as it holds the critical points and lower band of the long term average chances are that it may bounce back again, but it will gain some strength and consolidate only above its long term moving average range and will regain up momentum only above its major breakout point of 26616.71(see my post of 8.10.18). Similarly sustained break below the lower band of the long term moving average i.e.24817 and below the last critical point of 24719.72 will put the uptrend in potential danger which may please be noted. It is therefore suggested to get alerted in long trade if it sustain below 24876 and exit the trade if it sustain below 24817(it changes every day) and below 24719.72 for sure.

It is important to mention here that the last two days fall was an impulse down move ,so if it does not stage a smart recovery at the earliest and claw back above its important points(as mentioned above) then the fall may deepen further and it may witness much lower levels. So be vigilant and cautious in your trades.

REMARK: - It is in uptrend but last two day severe fall is a potential threat to the trend, but since it is holding on to its important points chances are that it may stage a smart recovery in coming days. Therefore long trade can be tried with caution near but not below 24876 or above its long term moving average upper band i.e. 25420.    

 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