DJI Technical Analysis Is This the Start of a Bull Run or Another Rejection?
DJI Technical Analysis Is This the Start of a Bull Run or Another Rejection?
DJI Technical Analysis Is This the Start of a Bull Run or Another Rejection?
DJI Technical Analysis Is This the Start of a Bull Run or Another Rejection?
K Karthik Raja (Market Educator & Technical Analyst)
MCA | MBA | M.Com | MSc Psychology | PGJMC | CST | MDAT | CFA Pursuant
Chart Pattern:
- The Dow Jones Industrial Average (DJI) is forming a rounded bottom recovery pattern.
- The price is moving within the Bollinger Bands, approaching a resistance zone.
- Multiple Moving Averages (50, 150, 200) are acting as resistance levels.
- Volume shows accumulation, indicating potential bullish interest.
Trend Analysis:
- Short-Term Trend: Uptrend as the price has been making higher highs and higher lows.
- Medium-Term Trend: Still in a recovery phase, struggling with resistance.
- Long-Term Trend: Bearish to sideways as the price is below the 200-day MA.
- ADX (14): At 27.63, indicating a moderate trend strength.
- MACD: Showing signs of a potential bullish crossover.
Upcoming Events to Watch:
- Economic Data: Any upcoming U.S. economic reports like CPI, GDP, or job data.
- FOMC Meeting: If scheduled, it may impact market sentiment.
- Earnings Reports: Major Dow components’ earnings could influence movement.
- Geopolitical Factors: Any news affecting global markets.
Trend Confirmation Indicators:
- RSI (14) at 62.32 – Not yet overbought, but approaching resistance.
- MACD Histogram improving – Potential bullish momentum.
- CCI (50) at 112.93 – Overbought zone, indicating a pullback is possible.
Final Takeaway:
- Market Direction: Neutral to slightly bullish.
- Key Resistance Levels: 42,612.96, 42,900, and 43,436.37.
- Key Support Levels: 42,050.05 and 41,939.25.
- Decision: Wait for a breakout confirmation before taking a position.
Breakout Strategy (Bullish)
- Entry: Above 42,612.96 (Confirm breakout with volume)
- Stop Loss: 42,050.05 (Below recent swing low)
- Target 1: 42,900 | Target 2: 43,200 | Target 3: 43,436.37.
Breakdown Strategy (Bearish)
- Entry: Below 42,050.05 (Confirm breakdown with volume)
- Stop Loss: 42,612.96 (Recent resistance)
- Target 1: 41,939.25 | Target 2: 41,700 | Target 3: 41,500.
Disclaimer
This analysis is for educational and informational purposes only. It does not constitute financial advice. Always consult a professional before making investment decisions.
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