A TECHNICAL UPDATE ON DOW JONES INDUSTRIAL AVERAGE –19.6.2021

 

DOW JONES INDUSTRIAL AVERAGE

Open—33622.70--High—33622.70—Low—33271.93—Close—33290.08 on 18.6.2021.

Support:33227.78/32980.57/32074.60/32009.64/31165.46/30919.50/30622.35/30606.48/30547.53/29856.30/29463.64/29229.10/

Resistance:33347.96/33473/33617.95/33687.01/33744/33810.87/34256.75/34454.05/34849.32/35019.56.

(Bold and underlined figures are most important)

It has been falling for the last five days and moving down it has decisively broken its major rising trend line drawn from the bottom of 18213.65 made on 23.3.2020, which is an extremely weak sign. Furthermore after making rounding top it started falling and in the process it has broken its short and medium term moving averages also and some important technical indicators are giving potential indication that it may further move down from here with intermittent short relief rallies in coming days, provided it does not bounce back sharply in the short period of time, chances of which seems less likely to happen at this point of time.

It is already into short term corrective mode and to come out of it, it has to move above 34380 and sustain on the closing basis to resume the up move again, but if it continues to move down, chances of which looks  pretty bright now then moving down, its critical support point would be at 32979.88---31108.37---30606.48---28073 levels. Please note that sustained break below 32979.88 on the closing basis will push it into medium term correction mode, sustained break below 31108.37 on the closing basis will push it into long term correction mode, sustained break below 30606 will potentially threaten the uptrend and most importantly sustained break below 28073 on the closing basis will get it into bear market.

The long term technical setup still looks o.k. as of now, but the short and medium term outlook is pretty weak now and if it does not bounce back sharply and move above 34380 and sustain then it could continue the  down move and may breach 30000 levels in coming days.

NOTE: - It is a technical assessment of the indices as of now, the technical interpretation changes with the price movement and time; therefore it needs periodic updating, which may please be noted.

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 are of spot market.

Contact me for strategic guidance to enter and exit trade.

 Thanks 

Narendra Kumar Surana

suranank@gmail.com

Mobile—8240951127/9831313654.