CryptoBullGod

DJI - Dow Jones Showing Warning Signs

DJCFD:DJI   Dow Jones Industrial Average Index
I always aim to K.I.S.S. by zooming out on the chart and looking for big picture key takeaways.

It's important to note the more we zoom out on a chart's timeframe (e.g. switching from a 1 day to a 1 month), the more significant the findings.

The chart shown is a 1 month chart:

(1) Negative Divergences on both the RSI and MACD since Jan-18
(2) Rising wedge since Mar-20 recovery (shown better on a weekly below)

I'm not saying the stock market is crashing tomorrow. What I am saying is there are long-term big picture warning signs telling us there is weakness in the price appreciation of the DJI that we need to be mindful of moving forward. Yes, at some point I expect these warning signs to resolve in a significant correction. However, that could take several years to play out. So we need to keep an eye on these charts.
Comment: There are 2 main things to pay attention to on this 3 month chart:

(1) recent negative divergence on the RSI

(2) RSI peak in 1998, lower highs ever since while DJI continues to churn higher
Comment:
Weekly view more clearly depicts the potential rising wedge pattern I have been monitoring
Twitter: @CryptoBullGod

Unique Value I add to this space:
https://youtu.be/YOa3NPEZuC0

Comments

Valuable info thanks. Tough decisions atm, many alts at 40% discounts but still expecting lower from btc
+1 Reply
Good job !
+1 Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar About Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Private Messages Chat Sign Out