18,206 Light
18,054-18,103 2014 peak
DJ Support: 17,910 Light
17,750 Strong
17,579 Very strong
17,425 200 Days moving average
16,990 Very strong
15,854 Very strong
Technical analysis:
DJIA is still in the range. Important is that it looked for its support at DJ17,750 and bounced up looking for the last resistances. It got DJ18,206. For technical analysis what counts is the market facing resistances. We witnessed that when DJIA looked for the final resistances, the volume decreased and buyers were not attracted.
I indicated in the chart the two ranges that are in play, and showed the almost seven year's bull market.
The charts are clear that the trend is up but in the last weeks DJIA is toppish, maybe trying to rest.
A violation of DJ17,579 and 16,990 will put us in alert.
Please click over the chart to enlarge it.
Fundamentals:
We realized at the beginning of April that the economic news and the corporate earnings were not enough robust to bring DJIA to new territories. Then, we were looking for a possible catalyzer to bring it to the unknown territories always with the conviction that the indexes were well supported as they are in did.
What we have to consider to trade in May and June are: interest rates, 10 year Treasury bond went higher to 2.27% from February low. China, its economy is weak and the market fears a stock and real states bubble because of its great debt. Foreign exchange war or crises, strong dollar attempts against U.S. exports. Stock market, bull market is still in play, please watch the chart.
Dear traders and investors, indexes are near their all-time highs and the market will try again to breakout them. If buyers would be attracted, the attempt will be succesful. It seems to me that May and June could be neutral months and in July the market could define its direction. For the time being let's watch the stock market, over DJ17,579 stay long.
Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!
Ulises
No hay comentarios:
Publicar un comentario