Always consider hidden risks
DJ Industrials (DIA ETF): Near Break Out?
March 23 2016 ( From TradingView, Stockcharts )
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The SituationSince the peak made on May 20 2015 at 183.35 on the Dow Jones Industrial
Average ETF DIA, we are into a lower highs and lower lows technical pattern in a multiple down steps...But we made almost a double bottom technical pattern (January 20 2016and February 11 2016 to painfully climb into a steep rising wedge.(See 1rst Chart Below - Grey Trendlines) Since then, the market have been on a strong rebound. We are above nowabove the 20 DMA (Day Moving Average) since February 16, the 50 DMA sinceFebruary 25 and most importantly, above the 200 DMA since March 11 2016.The DIA ETF is near testing a Major Resistance Trendline that started back
since the ultimate peak in price reached on May 20 2015.
(See 1rst Chart Below - Red Trendline - Ellipse ) But what puzzle me the most is that, near a break out zone on that DJ Industrials ETF, Trading Volume is getting Lower... (See Chart Below - Bottom Right - Blue Area)
As we are near testing that Major Resistance Trendline, Bulls need also to protect at all costs the Support Line from that steep rising wedge. Welcome to the Break Out Battlezone.
(See 1rst Chart Below - Grey Trendlines - Ellipse)It will be a tough Battle for Bulls as already the Dow Jones Industrial Average Bullish Sentiment Index is over the 85% threshold as shown by the second chart below.
(See 2nd Chart Below - Ellipse)
Dow Jones Industrials ( DIA ETF Daily Candles )
20 DMA ( Yellow Line )
50 DMA ( Red Line )
200 DMA ( Green Line )
DJ Industrials (DIA ETF): Near Break Out? $DJI, $SPY #investing #dowtheory #SP500 #dowjonesindustrials
Dow Jones Industrial Bullish Sentiment Index
7 DMA ( Blue Line )