DJ Resistance: 18,289 All-time high
18,054-18,103 2014 peak
DJ Support: 17,750 Light
17,579 Strong March low
17,420 200 Days moving average
16,990 Very strong
15,854 Strong
Technical Analysis:
DJIA is challenging the 2014 peak that is working as a robust resistance, DJ18,054-18,103. Support is at DJ17,750.
The trading range for the last three months is DJ17,579-18,289, if the index stays in, it is constructive for the bull case.
DJIA is weaker than S&P and NASDAQ Composite. Are they going to draw DJIA or this last one is going to take them down?
The charts are clear pointing up and sustaining the bulls. I interpret that the market is resting and preparing its next up leg.
The consolidation range is the same DJ16,990-18,289. If the supports DJ17,579 and 16,990 are percolated then we are going to face a healthy correction.
Please click over the chart to enlarge it.
Fundamentals:
Sell in May and go away? Statistically May to October are a little hard to trade but it doesn't mean that they are negative.
As explained in the prior blogs, the weak economic news and the disappointed earnings during this season couldn't bring the indexes to uncharted territories. For that the indexes need another catalyzer that could be the unemployment rate and the Nonfarm payroll this coming Friday.
Dear traders and investors, remember, fundamentals lead the way. Without a genuine and positive catalyzer, the robust resistance could put the market in the defensive way, let's say that DJIA could look for the range supports. Don't be discouraged!
Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!
Ulises
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