A TECHNICAL UPDATE ON DOW JONES INDUSTRIAL AVERAGE –27.2.2023

 

DOW JONES INDUSTRIAL AVERAGE

Open—32999.19--High—32999.19—Low—32643.48—Close—32816.92 on 24.2.2023.

Support:32643.48/32573.42/32284.35/32074.60/31728.85/31231.27/30635.76/30145.31/29654.59/28723.55/28662.86

Resistance:32949.75/33147.28/33225.61/33285/33418.59/33583/34113.40/34342.28/34587.66/34711.63/35361.36/35492.72/35824.28/36189.66.

 (Bold and underlined figures are most important)

Further to my last post of 6.2.2023, it was consolidating in the range of 34711.63---32573.43 and now it is very near to its lower band of the range, which is concerning and break below the range could drag it down. It is into corrective mode now and fallen within the range of its long term moving average also which is placed between 33210---32089(figures will change every day, this  is very strong support range) for the day, furthermore it is below its short & medium term moving average on the daily chart and some are below on the weekly chart also,  all the important technical indicators on the daily ,weekly and monthly charts are negative and indicate big fall ahead as of now,  the overall technical setup is very weak at this point of time, therefore please note that if does not bounce back sharply in next 4-5 trading session and move above some of its critical points as mentioned below and sustain then the accelerated fall looks inevitable in coming days.

Moving down it will find support at 32573.42---32530---32402---32089---31831---31689---30975---30622---30093---29875(these points could be possible buying points also), 32573---32530---32089 range is the strong support range, but please note that 32089(lower band of the long term moving average) & 30622 (pullback trigger point) is the last key support for now. It is already into correction mode and break below 32530 will push it into deep corrective mode , sustained break below 32089 will potentially threaten the long term uptrend and fall may accelerate ,but as long as it hold 30622 chance of pullback rally will be there, which please note.

Similarly moving up it will find resistance at 32949.75---33147.28---33225.61---33285---33787—34343---34997---35296(these points could be possible sell point also), Please note that it has to move above 33226 and sustain on the closing basis to put it back on the strong up track mode, else it may drift down again.

In view of the above observation technical setup is extremely weak and the down correction is on ,therefore it is a sell on the rise market or sell on the price breakdown in general as of now and for the safe traders it is suggested to avoid long trade till a visible sign of correction completion emerges. However since it is way above its major pullback threshold point of 30622, so chances of pullback rally is always there; therefore aggressive traders can try long trade at important and critical support points for the pullback gains. But be alert and extremely cautious in the long trade initiated for pullback gains because it is in the corrective mode and pullback rally can fizzle out abruptly trapping the traders unaware. Please do not trade without stop loss.

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.