A TECHNICAL UPDATE ON DOW JONES INDUSTRIAL AVG INDEX- 8.6.2020

DOW JONES INDUSTRIAL AVG INDEX-

CLOSED AT 27110.98 ON 5.6.2020.

                                                                           

SUPPORT:26384/26241.42/25980/25800.35/25758.25/25743.46/25440/25372/25208/25031.67/24965.77/24764/24294/24040.58/23655/23531.31/23408/23344/23242/22941.88/22789.63/22638.47/21712.53/21600/21447.85/20893.41/20735/20553/20379/19845/19677.94.

 

RESISTANCE:27297.58/27338.30/23398.68/27517.67/27774.06/27675.20/28090.21/28169.53/28174.97/28376.49/28538.44/28638.97/28701.68/28955.66/29373.62/29568.57.

 

(Underlined & bold figures are very important)

 

Further to my last post of 5.5.2020 it decisively crossed the possible top out point of 24764.77. It has been exhibiting tremendous strength since and moving up relentlessly, this is the strongest bear rally ever noticed in Dow.

 

It is important to mention here that it has retraced more than 80% of the fall from the top of 29568.57 and bottom of 18213.65 and now if it moves above 27297.58 and sustain on the closing basis then it could retest or cross its all time high of 29568.57. But it looks slightly difficult to sustain this level as it opened with a huge gap up today and did not make an effort to fill the gap, please note that gap at critical level could be an exhaustion gap also, therefore if it does not move above 27297.58 in next 5-6 trading session and sustain on the closing basis then correction could set in.     

 

Furthermore, it is imperative to note that the recent robust up move has no connect with the fundamentals and it is  purely technical and liquidity driven rally which may not last because it is the fundamentals only which holds the price line eventually. So there is bright chance of the ongoing rally exhaustion at this point and down slide may begin provided it does not move above 27297.58 and sustain. It is therefore suggested to avoid long trade at this point of time. Short trade can be attempted below 27297.58 with a stop loss of above 27380.   

 

REMARKS: -The long term trend is down. It has been rallying up unexpectedly defying all the fundamentals but now it has reached a make or break point technically and if it does not move above its critical point of 27297.58 and sustain on the closing basis then this rally may exhaust for good. So long trade should be avoided for now. The long term bias is bearish.

 

Kindly note that make your cost your stop loss in favourable  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.