- Last week, following the Federal Reserve’s surprise decision of maintaining the pace of its monthly asset purchase program at $85 billion, the Dow Jones Industrial Average (DJI30) rose sharply to hit to all-time highs of 15721.
- However, as was mentioned in previous report, the index faced resistance at around 15700 area and on Friday the index gave-up some of its recent gains and drifted lower towards its next support level near 15400 – 15450 zone, which might act as important pivot for any further downside movement for the index.
- Should the index weaken below this immediate support, the index, in the near-term, might then be vulnerable to further weakness initially towards 15150 horizontal support and further towards testing sub 15000 levels (14950).
- On the upside, 15500 level now seems to provide immediate resistance for the index. However, 15700 area, marked by the upper trend-line of an ascending channel formation on daily chart and 100% Fibonacci Expansion level, might continue to act as important resistance for the index.
- Should the index now manage to decisively break above 15700 resistance area, the index, in the medium-term, is likely to continue its upward trajectory and appreciate further towards 16750 – 16800 levels, representing the top-end of the long-term ascending channel resistance.
Original Article: Admiral Markets and hyper link Admiral Markets with http://www.admiralmarkets.com/
