DJIA going up more or a reversal is due
Hello everyone , as we all know the market action discounts everything :)
The Dow Jones Industrial Average closed at a record high on Friday while the market close above 35,000 for the first time ever, bringing its gain for 2021 to more than 14% clinches four consecutive days of finishing in the green, The DJI seems to be getting even more momentum by day and we could be seeing something big happen in the next few months and the price reaches the 40000 range.
Using the Eliiott waves theory we can see that the market could be in the middle of his second impulsive wave and the price could be reaching the 35411.49 resistance line by the end of the wave .
The market movement is still in the range of a upward channel with no reversal patterns to be found yet , A move over 34951 will show us the presence of buyers. breaching 34993 will tell us that the buying is getting stronger. This is a potential trigger point for an acceleration to the upside since there isn’t any resistance .
A move under 34951 will show us the presence of sellers. If the move is able to create enough downside momentum then we might be looking for a pullback into the first retracement zone at 34308 to 34146. Since the main trend is up, buyers will probably come in on a test of this area.
technical indicators showing that :
1) The market price at 35061.56 trending above the MA 34765.01 and EMA 34747.79 (bullish sign)
2) The RSI is at 58.21 showing great strengths in the market with the possibility to reach overbought zone soon (bullish sign)
3) The MACD at 131.29 showing great momentum in the market with a positive crossover happening ( bullish sign)
Support & Resistance points :
support Resistance
1_ 34527.11 1_34969.30
2_ 34366.37 2_35250.75
3_ 34084.92 3_35411.49
Fundamental point of view :
The focus shifts to tech stock earnings and the Federal Reserve. Traders aren’t expecting much from the Fed, which is why the market has been rallying. Investors seem to have accepted the notion that inflation is temporary. The risk is still to the downside since the Fed could surprise again by announcing a tapering date or moving the date of the first rate hike closer.
The Fed wraps up its two-day meeting on Wednesday and its statement will be scrutinized for any mention of the timeframe for tapering its asset purchase program, although Chairman Jerome Powell made it clear in his recent testimony to Congress that the U.S. economy still needs the central bank's full support.
In June, policymakers began debating when to start cutting monthly purchases of $120 billion of Treasuries and mortgage-backed securities.
Powell may indicate that while a discussion on tapering has started, there is still time before officials reach a conclusion on what they will do. Policymakers are expected to highlight the risk from the rapidly spreading Delta variant, which investors worry could derail the economic recovery.
Most analysts expect the Fed to give a clearer indication of its plans for scaling back its quantitative easing program at its annual conference in Jackson Hole, Wyoming, in late August, before a formal announcement on tapering later in the year. According to investing and dailyfx
_____________________________________________Make sure to Follow and Like for more content_____________________________________________
This is my personal opinion done with technical analysis of the market price and research online from fundamental analysts for The Fundamental point of view , not financial advice.
If you have any questions please ask and have a great day !!!
Thank you for reading.
The Dow Jones Industrial Average closed at a record high on Friday while the market close above 35,000 for the first time ever, bringing its gain for 2021 to more than 14% clinches four consecutive days of finishing in the green, The DJI seems to be getting even more momentum by day and we could be seeing something big happen in the next few months and the price reaches the 40000 range.
Using the Eliiott waves theory we can see that the market could be in the middle of his second impulsive wave and the price could be reaching the 35411.49 resistance line by the end of the wave .
The market movement is still in the range of a upward channel with no reversal patterns to be found yet , A move over 34951 will show us the presence of buyers. breaching 34993 will tell us that the buying is getting stronger. This is a potential trigger point for an acceleration to the upside since there isn’t any resistance .
A move under 34951 will show us the presence of sellers. If the move is able to create enough downside momentum then we might be looking for a pullback into the first retracement zone at 34308 to 34146. Since the main trend is up, buyers will probably come in on a test of this area.
technical indicators showing that :
1) The market price at 35061.56 trending above the MA 34765.01 and EMA 34747.79 (bullish sign)
2) The RSI is at 58.21 showing great strengths in the market with the possibility to reach overbought zone soon (bullish sign)
3) The MACD at 131.29 showing great momentum in the market with a positive crossover happening ( bullish sign)
Support & Resistance points :
support Resistance
1_ 34527.11 1_34969.30
2_ 34366.37 2_35250.75
3_ 34084.92 3_35411.49
Fundamental point of view :
The focus shifts to tech stock earnings and the Federal Reserve. Traders aren’t expecting much from the Fed, which is why the market has been rallying. Investors seem to have accepted the notion that inflation is temporary. The risk is still to the downside since the Fed could surprise again by announcing a tapering date or moving the date of the first rate hike closer.
The Fed wraps up its two-day meeting on Wednesday and its statement will be scrutinized for any mention of the timeframe for tapering its asset purchase program, although Chairman Jerome Powell made it clear in his recent testimony to Congress that the U.S. economy still needs the central bank's full support.
In June, policymakers began debating when to start cutting monthly purchases of $120 billion of Treasuries and mortgage-backed securities.
Powell may indicate that while a discussion on tapering has started, there is still time before officials reach a conclusion on what they will do. Policymakers are expected to highlight the risk from the rapidly spreading Delta variant, which investors worry could derail the economic recovery.
Most analysts expect the Fed to give a clearer indication of its plans for scaling back its quantitative easing program at its annual conference in Jackson Hole, Wyoming, in late August, before a formal announcement on tapering later in the year. According to investing and dailyfx
_____________________________________________Make sure to Follow and Like for more content_____________________________________________
This is my personal opinion done with technical analysis of the market price and research online from fundamental analysts for The Fundamental point of view , not financial advice.
If you have any questions please ask and have a great day !!!
Thank you for reading.