Hey guys ! What's up with your trading ? Mine's doing great, especially with Bitcoin ! But today I want to bring you on the ''other market'' and take a look at the good old DOW. Are you curious too see what's up with the stock market ?
So let's summarize :
- DJIA is way to extended from it's 200 daily simple moving average and should go touch it soon : As you can see on the chart, the DOW didn't touch it's 200 daily sma since mid 2016... Yeah, almost 2 years, when usually those intervals between two 200 daily sma touch are about 6 month in average. It's overdue.
- A big neutral symmetrical triangle is there showing than a break out is imminent : The price is now almost at the end of the triangle... This should break out in the next few days. This kind of triangle is usually a neutral pattern.
- The declining volume validates the big yellow bear flag : As you probable know, during a bear flag, the volume usually decline. That's what we saw now and this validates the bear flag and make it stronger. This is bearish and the target is around the yellow line (200 daily sma).
- DJIA is stuck tightly between it's 2 moving average, the 50 day and the 100 day, showing again than we should see a break out soon : With the triangle, this shows us that there is a lot of pressure on the price now, which should make the break out powerful.
- Fear, uncertainty and doubt (FUD) are more than present in the market due to Trump's politics : Commercial fight, VIX index, inflation, North Korea, Interest rates hike... We have a lot of uncertainty and volatility in the market at the moment and this could bring us into a bigger/longer correction.
- Target ? The 200 daily SMA ! (Again guys, as always, don't take this for granted... This is just what I see on the chart)
However, don't forget, we are currently still in a bull market and should eventually fully recover and DJIA should make new all time high by the end of the year. I don't see a bear market coming for now. The economic and companies earnings growth are too strong and stable right now. But keep in mind than sooner or later inflation will come and so interest rates hike. This will slow the growth and could even bring us into a recession and then inevitably a bear market would follow. But we are probably far from that.
Ok guys so that's it ! And don't worry, next analysis will be about my favorite one... Bitcoin !
Stay tuned,
Fred
So let's summarize :
- DJIA is way to extended from it's 200 daily simple moving average and should go touch it soon : As you can see on the chart, the DOW didn't touch it's 200 daily sma since mid 2016... Yeah, almost 2 years, when usually those intervals between two 200 daily sma touch are about 6 month in average. It's overdue.
- A big neutral symmetrical triangle is there showing than a break out is imminent : The price is now almost at the end of the triangle... This should break out in the next few days. This kind of triangle is usually a neutral pattern.
- The declining volume validates the big yellow bear flag : As you probable know, during a bear flag, the volume usually decline. That's what we saw now and this validates the bear flag and make it stronger. This is bearish and the target is around the yellow line (200 daily sma).
- DJIA is stuck tightly between it's 2 moving average, the 50 day and the 100 day, showing again than we should see a break out soon : With the triangle, this shows us that there is a lot of pressure on the price now, which should make the break out powerful.
- Fear, uncertainty and doubt (FUD) are more than present in the market due to Trump's politics : Commercial fight, VIX index, inflation, North Korea, Interest rates hike... We have a lot of uncertainty and volatility in the market at the moment and this could bring us into a bigger/longer correction.
- Target ? The 200 daily SMA ! (Again guys, as always, don't take this for granted... This is just what I see on the chart)
However, don't forget, we are currently still in a bull market and should eventually fully recover and DJIA should make new all time high by the end of the year. I don't see a bear market coming for now. The economic and companies earnings growth are too strong and stable right now. But keep in mind than sooner or later inflation will come and so interest rates hike. This will slow the growth and could even bring us into a recession and then inevitably a bear market would follow. But we are probably far from that.
Ok guys so that's it ! And don't worry, next analysis will be about my favorite one... Bitcoin !
Stay tuned,
Fred
Trade active:
Target almost achieved...
Trade closed: target reached:
Annnnd we hit our target ! Let's see if it'll touch the 200 daily moving average now
Trade closed: target reached:
Dow Jones finally touched it's 200 daily moving average today !
