Dow Jones price prediction for Monday 2nd March 2020
As we all know Dow had five consecutive days of loses and suffered the worst weekly performance since February 2018. We also know the market moves in a sequence of upwards and downwards moves and not in the same direction all the time.
These movements usually occur around major support and resistance price level, which attract major players in the financial market to get in early using their automated trading system and often creates market volatilities; this is where greed, fear, and hope comes into play. Small players are usually traped in these events taking the bait and get burned badly.
We don't know what the market is going to do next; however, we can look at the past data and recent events and try to make sense of what is roughly going to happen. These lead to what I am going to present in this post.
While reviewing last week's events, I noticed an important point on the chart that I missed to point out in my previous update, which is the support line where the Index held on at the end of last week's session. I mention that it is a critical point but now noticed how my leading indicator has automatically picked up this point as a significant price point to take note. It makes sense as to why the market held on at this point.
If we scroll back in history and look at what happened at this point in the past, you will notice that the Index took on this point many times in the past all the way to Feb 2018. There were unlucky bounce off and some lucky bounces at this point so I think the Index will try to push through 25514.00 to get to 26030.00. It will also need to hold at 24706.00. Be very careful about trying to get into the market because there could be a trap set up at around 2630.00 and 26491.00.
What I see now is the market needs to break and hold above 2630.00 to change direction, and if it falls below the current support which is roughly at 24706.00 then we could be looking at 23957.00 and 23262.00 for its next major support level.
These movements usually occur around major support and resistance price level, which attract major players in the financial market to get in early using their automated trading system and often creates market volatilities; this is where greed, fear, and hope comes into play. Small players are usually traped in these events taking the bait and get burned badly.
We don't know what the market is going to do next; however, we can look at the past data and recent events and try to make sense of what is roughly going to happen. These lead to what I am going to present in this post.
While reviewing last week's events, I noticed an important point on the chart that I missed to point out in my previous update, which is the support line where the Index held on at the end of last week's session. I mention that it is a critical point but now noticed how my leading indicator has automatically picked up this point as a significant price point to take note. It makes sense as to why the market held on at this point.
If we scroll back in history and look at what happened at this point in the past, you will notice that the Index took on this point many times in the past all the way to Feb 2018. There were unlucky bounce off and some lucky bounces at this point so I think the Index will try to push through 25514.00 to get to 26030.00. It will also need to hold at 24706.00. Be very careful about trying to get into the market because there could be a trap set up at around 2630.00 and 26491.00.
What I see now is the market needs to break and hold above 2630.00 to change direction, and if it falls below the current support which is roughly at 24706.00 then we could be looking at 23957.00 and 23262.00 for its next major support level.
