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Dow Jones: The importance of the 1W MA200. Bull Cycle intact.

TVC:DJI   Dow Jones Industrial Average Index
This is a long term approach on DJI after the price hit the Higher Low trend line of the 1W Channel Up ( RSI = 44.081, MACD = 142.400, ADX = 38.014) following the worst weekly sell-off since the Subprime Crisis. The 1W RSI also just hit the 34.000 level which is a Support since 2016 and last time it visited that level was on the previous Higher Low of the Channel Up in December 2018 (bottom of the U.S. - China trade war tensions).

On such a long term analysis, we want to emphasize the importance of a key marker that is behind this +10year Bull Cycle and how it is keeping the bullish sentiment on stocks alive.
That is the MA200 on the 1W chart. During the 2008 mortgage crisis, the 1W MA200 acted as a Resistance. It first broked convincingly in October 2010 and was immediately tested (and successfully held) as a Support. That was unofficially the start of the new Bull Cycle on Dow Jones, as since then the 1W MA200 has held as a Support on four occasions after sharp market sell-offs (Aug 2015 China's slowdown, Feb 2016 Oil decline, Dec 2018 trade war etc), keeping the multi year uptrend alive.

Last week the index came close again to the 1W MA200, which successfully held. As long as 1W candles close above this trend line , the multi year Bull Cycle will continue and every pull back is a long term buy opportunity. In fact based on the current 1W Channel Up, Dow's next Higher High target is 32,000.




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Comments

Once the Fed starts helicoptering money, yes, this chart is a huge possibility. The only reason the market hasn't hit circuit breakers consecutively, its because of the Fed holding back the flood gates.
+1 Reply
InvestingScope WorldEconomics
@WorldEconomics, That is correct and us as traders and investors should use that to our advantage and buy those cyclical pull backs/ corrections.
Reply
WorldEconomics InvestingScope
@InvestingScope, well, we’re heading towards a dollar crisis. This isn’t another buy the dip situation, it’ll be a fiat crisis.
Reply
Is this still valid? I believe the MA200 was briefly broken. Do you still believe the bull cycle in in tact?
Reply
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