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Dow Jones – Technical Outlook
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On Monday, US stock index, Dow Jones Industrial Average (DJI30), closed at a four-week low of 14918, below the 200-day SMA and 23.6% Fibonacci Retracement
- On Monday, US stock index, Dow Jones Industrial Average (DJI30), closed at a four-week low of 14918, below the 200-day SMA and 23.6% Fibonacci Retracement Level of Nov. 2012 to all-time high up-move, as the US government shutdown stretched into its seventh day.
- As was mentioned in previous report, after falling below 14950 support region, DJI30 futures, on Tuesday, slipped towards 14850 area, the lower trend-line of the ascending channel formation on daily chart.
- After testing the lower trend-line support, the index future recovered from day’s low and is currently quoting at 14938 from 14918 on Monday.
- Should the index now fail to hold the trend-line support, it might continue slipping towards lows touched in the month of August, a very important support near 14800 – 14770 zone.
- Moreover, a decisive break below 14850 strong support would probably confirm break-down from the ascending channel formation on daily chart, indicating further downside for the index initially towards 14800 levels and further towards testing June 2013 lows.
- On the upside, 200-day SMA and 23.6% retracement level near 14960 – 14970 area might provide immediate minor support for the index.
- This is likely to be followed by horizontal resistance near 15050 area, preceding the 50-day SMA resistance near 15150, which now seems to act as important resistance for the index.
- Furthermore, any major up-move, beyond the 50-day SMA resistance, is likely to be capped at 100-day SMA resistance near 15200 – 15220 region. Only a decisive move above 15200 strong resistance would probably negate the short-term bearish outlook for the index.
- Original Article: Admiral Markets and hyper link Admiral Markets with http://www.admiralmarkets.com/
About the Author
Haresh Menghaniauthor
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