A TECHNICAL UPDATE ON DOW JONES INDUSTRIAL AVERAGE –1.3.2022

 

DOW JONES INDUSTRIAL AVERAGE

Open—33635.29--High—33962.78—Low—33469.51—Close—33879.55 on 28.2.2022.

Support:33785/33741/33613/33473/33271.93/33155.71/32284.35/32074/32009.64/31272.22/30547.53/29881.82/29856.30.

Resistance:34014.41/34092/34145/34257/34307/34454/34692/34850/35048/35092/35511/35631/35678/35824/36190/36317/36514/36562/36679/36952.53.

(Bold and underlined figures are most important)

Its overall technical setup is very weak and at this point of time it is already into medium term correction mode. Furthermore 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 already in potential danger now, which is concerning. Please note that to keep the hope alive for the up move to regain some foothold it has to move above 34310(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) on the closing basis, else down move 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. Last but not the least moving down its most crucial and important support points is 29856---29758 & 29562 break below  these points will confirm the end of long term uptrend and  may accelerate that fall and can drag it down to much lower levels.

Its important technical indicators are already very weak on the daily and weekly chart and now those indicators are showing distinct weakness on the monthly chart also, which is highly concerning, therefore further fall looks imminent from here if the price does not improve fast.  Moving down the critical supports point could be at 33741.78---33613.03---33473.80---33386.04---33271.93---33155.71---32530.25—32284.35, it could bounce back from any of these points and most importantly as long as it hold 33386.04(figure will be revised downward if it breaks the recent low of 32284.35) on the closing basis chances of up move is there. Moving up its critical resistance points would be at 33992---34068---34395---34495---34619---35169---35841.  Please note that the possible up move would be a pullback rally only and may not last and can end at any of the above points. So be alert and cautious if one initiates long trade for the pullback gains. Looking at the overall technical setup it is suggested to avoid long trade for now.  

REMARKS: - Long term uptrend is in potential 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.