indrajit_16
Member
- Messages
- 88
- Likes
- 1
Wednesday Night Update Of Dow Jones (DJIA)
The Federal Reserve met expectation of keeping interest rates unchanged. Their statement was slightly more positive on the economy discounting the inflation threat. They stated that the recession is abating and did not change their bond purchase program. However, rumors of a Bernanke/Fed cover up during the Bank of America/Merrill Lynch merger weighed heavily on shares. The Dow closed 0.3% lower at 8300 on Wednesday as it extended this month's decline and tested the 25% retracement level of this spring's rally at 8293. The low-range close sets the stage for a flat to lower opening on Thursday.
Trade Triangle Analysis shows that negative longer term is strengthening. The market action could signal the start of a major trend change
, presently a weak downtrend to be traded with very tight money management stops. Based on a pre-defined weighted trend formula for chart analysis, DJI scored -70 on a scale from -100 (strong downtrend) to +100 (strong uptrend).
Dow Pivot Levels For Thursday 25th June:
R3 - 8633.02
R2 - 8544.93
R1 - 8422.39
Pivot - 8334.30
S1 - 8211.76
S2 - 8123.67
S3 - 8001.13
Dow Quick Technicals: Stochastics and the RSI are oversold but remain bearish signaling that sideways to lower prices are possible near-term. If the Dow extends this week's decline, the swing low at 8221 is the next downside target. Only closes above the 21 DMA at 8509 would temper the bearish outlook in the market. First resistance is the 5 DMA at 8390. Second resistance is the 21 DMA at 86509. First support is today's low at 8246, second support is the swing low of at 8221.
Regards,
Indrajit
Analysis On Indian And US Stock Markets, Free Nifty Trading System, USA And UK Index Charts
The Federal Reserve met expectation of keeping interest rates unchanged. Their statement was slightly more positive on the economy discounting the inflation threat. They stated that the recession is abating and did not change their bond purchase program. However, rumors of a Bernanke/Fed cover up during the Bank of America/Merrill Lynch merger weighed heavily on shares. The Dow closed 0.3% lower at 8300 on Wednesday as it extended this month's decline and tested the 25% retracement level of this spring's rally at 8293. The low-range close sets the stage for a flat to lower opening on Thursday.
Trade Triangle Analysis shows that negative longer term is strengthening. The market action could signal the start of a major trend change
, presently a weak downtrend to be traded with very tight money management stops. Based on a pre-defined weighted trend formula for chart analysis, DJI scored -70 on a scale from -100 (strong downtrend) to +100 (strong uptrend).Dow Pivot Levels For Thursday 25th June:
R3 - 8633.02
R2 - 8544.93
R1 - 8422.39
Pivot - 8334.30
S1 - 8211.76
S2 - 8123.67
S3 - 8001.13
Dow Quick Technicals: Stochastics and the RSI are oversold but remain bearish signaling that sideways to lower prices are possible near-term. If the Dow extends this week's decline, the swing low at 8221 is the next downside target. Only closes above the 21 DMA at 8509 would temper the bearish outlook in the market. First resistance is the 5 DMA at 8390. Second resistance is the 21 DMA at 86509. First support is today's low at 8246, second support is the swing low of at 8221.
Regards,
Indrajit
Analysis On Indian And US Stock Markets, Free Nifty Trading System, USA And UK Index Charts
