A TECHNICAL UPDATE ON DOW JONES INDUSTRIAL AVERAGE –20.2.2022

 

 DOW JONES INDUSTRIAL AVERAGE

Open—34248.32--High—34422.82—Low—33977.43—Close—34079.12 on 18.2.2022.

Support:34014.41/33785/33741/33613/33473/33271.93/33155.71/32074

Resistance:34145/34257/34307/34454/34692/34850/35048/35092/35511/35631/35678/35824/36190/36317/36514/36562/36679/36952.53.

(Bold and underlined figures are most important)

Its overall technical setup is very weak at this point of time and it is into medium term corrective mode and it is below its important critical points and also below its long term  moving averages   on the daily chart, therefore its long term uptrend is in potential danger now, which is concerning. Please note that to keep the hope alive for the up move to regain foothold it has to move above 34500(figure may change upward or downward every day) and sustain on the closing basis and it may pick up some up momentum only if it moves and sustain above 35500(figure may change upward or downward every day) and may gain speed if it moves above 35824.28 and sustain on the closing basis, else downside will continue with in between short relief rallies. It is important to mention here that break below 32530.25 will push it into long term correction mode and in a way will confirm the end of the long term uptrend. Last but not the least break below 29562 will push it into bear market territory which may be kept in mind.

Its important technical indicators are very weak on the daily and weekly chart, which indicates that it could fall further from here if the price does not improve fast. Furthermore if down move continues weakness will spill over to monthly chart also, which could be devastating.  Moving down the critical supports point could be at 34014.41---33741.78---33613.03---33473.80---33271.93---33155.71, it could bounce back from any of these points and most importantly as long as it hold 34051.76(figure will be revised downward if it breaks the recent low of 33155.71) on the closing basis chance of up move is there. The possible up move would be a pullback rally only and may not last long till it moves above its critical points as mentioned above. So be alert and cautious if one has the long position.

REMARKS: - Long term uptrend is in real danger at present and it is already into medium term correction mode, therefore it is suggested to avoid long trade till correction completion signs emerges.

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.