Hello Guys,
Today We will Discuss about DOW JONES. The US Stock Index.
Let's Go tho the Chart Directly.
This is a Daily Chart, where we can see a Bullish Continuation Pattern Cup & Handle is being Formed, A Slight Consolidation is being done while the Handle Part is being completed, We can see two important levels, 21300 and 21526 ... Acting as Strong Support and Resistance. We need a Close above 21526 to come out of the range and start next upmove. The Neckline of the Cup & Handle is currently around 21600 which in short term will act as an important resistance level, ultimately it is a round number and will work as a Psychological resistance also.
Once the Index Crosses 21600-21640 zone and sustains above the levels, We will experience a sharp upmove and it will bring an upside of at least 1000 points.
Previous Breakout around 20560 zone was a Flag Breakout with a target of 21800+ Level, Indicates crossing 21600 will not be difficult. The Index is Smoothly Moving by taking supports around 20 day smooth moving average. Recent support was taken around 21300 level.
If we look in Longer timeframe like Weekly or Monthly, a Nice Cup and Handle Breakout has already occured around 19000 levels, Target of the breakout is around 25000+ levels and The index will move accordingly forming different bullish continuation patterns and spending time in Consolidation.
I have been advising Longs in the Index since a long time almost since 15000 levels and The Index has always performed as per expectations. I hope this will help you take your decisions in trading and positioning your trades accordingly.
At Present levels, I am Expecting a breakout above 21600 and a move above. I will never rule out a possibility of correction in the index, Every Correction is Good for Entry and Longs can be added on every dip for the target of Index level of 25000 and above.
As Always I will Say Again...... DO NOT SHORT STOCK MARKETS, Atleast not now... Rest all is Your Decisions !!
Recommendation :
Instrument : DOW JONES
Trade : Buy in The Range of 21560 to 21300 / With a Stoploss of 21200 and Hold For Targets of 21800 - 22100 - 22400 - 22600
Follow Proper Risk Management and Trade Carefully. Before Entering the Trade Consider Margin Requirements and Your Accounts Abilities to carry the Floating Profit / Loss. Consult Your Financial Adviser before Entering any trades. Never Avoid to Consult a Financial Adviser.
Disclaimer :
The Adviser is a GLOBAL Market Expert and Internationally Known Financial Adviser. The Adviser or his Clients are having trading positions in the said instrument. Follow Strict Risk Control, The Adviser will not be responsible for any losses arising due to wrong positions sizing.
