Always consider hidden risks
DJ Industrials: My Uptrend Channel ?
October 21 ( From TradingView )
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The SituationThe US equity market was showing some strenght since mid-May 2015. Industrials were
performing very strongly since then and was a sign for that; it did confirm the last upleg of the
stock market. But the Industrials are weakening tremendously since its peak done on
May 19 2015.
Two chart below is worth a look where we will show the the Dow Jones Industrials.On July 21, the DJ Industrials (DJI) closed below the 50 DMA ( Day Moving Average - Red Line
- Chart Below ), a first weak
On July 23, the DJ Industrials closed below the 200 DMA ( Day Moving Average -
Green Line -
Chart Below ), a second weak technical sign.
On August 11, the 50 DMA (Day Moving Average - Yellow Line - Chart Below) on the
DJ Industrials closed below the 200 DMA (Red Line - Chart Below), called a Death Cross, a
third weak technical sign. ( Chart Below - Ellipse )
On September 17, DJI tested the Resistance Trendline from a Rising Wedge Pattern that started back on
August 24 2015 and we had a Shooting Star Pattern on DJI that day.
( See chart below - Blue Line )
On September 29 and on October 2, DJI tested the Support Trendline from that same Rising Wedge Pattern that started back on
August 24 2015. ( See chart below - Blue Line )
On October 2, the DJ Industrials closed above the 20 DMA ( Day Moving Average -
Yellow Line - Chart Below ) , and on October 6 did close above the 50 DMA ( Day Moving Average - Red Line - Chart Below ). On October 20, the 20 DMA closed above the 50 DMA, another good technical sign indeed for the Dow Jones Industrials
Since October 8, DJI keep testing again and again the Resistance Trendline from that same Rising Uptrend Channel Pattern that started back on August 24 2015. ( See chart below - Blue Line ) Only breaking that resistance will gives us another Bull Impulse to the 200 DMA zone, the next resistance ( See chart below - Green Line )
Bulls need to protect the Support Trendline from an old rising wedge. ( See chart below - Yellow Trend Line )
But the most interesting technical factor is that, On a Relative Basis compare to the SP500 Index, the DJ Industrials tested the Major Support Trendline level that started back in August 1999 and rebounded!
( See Red Trendline - Second Chart Below )
Dow Jones Industrials ( Daily Candles )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
200 DMA ( Green Line )
DJ Industrials: My Uptrend Channel ? $DJI, $SPY #investing #dowtheory #SP500 #dowjonesindustrials
Dow Jones Industrials
over SP500 Index ( Blue Line )
20 DMA ( Amber Line )