Trading news

Dow Jones – prognosis via Dow Theory for calendar week 41/2015

Weekly chart:

The big picture is showing a valid downtrend with a correction zone between 17372 points and 18074 points. After the last correction, which came to an early end at 16836 points, the index transitioned into a movement once more, but broke this off again and is now proceeding with its correction. This correction could have its first target at the 20 SMA.

Chart1

Daily chart:

Equally, in the daily chart, the downtrend is also not to be overlooked. Here, the last correction zone lies between 17320 points and 17732 points (red rectangle). Here it is even more obvious that the index is showing a certain amount of strength once more, and is expanding its correction more than ever. Since the downtrend is located within the correction and has not yet developed any reversal signals, there is accordingly no possibility to place a trade in this trend size.

Chart2

Hourly chart:

The downtrend from last week was interrupted by the break of the point three at 16276 points and since no new trend has formed yet, the index should be regarded as trendless in this trend size. However, the price has now formed a correction after the last high at 16694 points, and this correction has found its current low at 16577 points. If the price should now rise above the last point 2, then we would have a valid trend once again, which should, however, be classified as corrective in the course of the primary trend. Long trades should therefore be closely secured with a stop.

Chart3

I hope you will remain favorably disposed towards me and always remember: the journey is the reward!

All the best

Markus Gabel

Head of Sales/Trading

AgenaTrader/TradeEscort

AgenaTrader Trading Software

IMPORTANT NOTE: Exchange transactions are associated with significant risks. Those who trade on the financial and commodity markets must familiarize themselves with these risks. Possible analyses, techniques and methods presented here are not an invitation to trade on the financial and commodity markets. They serve only for illustration, further education, and information purposes, and do not constitute investment advice or personal recommendations in any way. They are intended only to facilitate the customer's investment decision, and do not replace the advice of an investor or specific investment advice. The customer trades completely at his or her own risk. Please refer to the current version of the Terms and Conditions.

Tuesday, 06 Oct, 2015 / 4:56

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