Not surprisingly to us, Dow Jones has stayed inside the High Volatility region that we have identified back in late November:
The 1D MA200 (orange trend-line) has supported twice already since November 10 and is now going for its 3rd hold. If we pay a closer attention to the 1D RSI we see that it has printed the very same pattern it made on all Lows during the 2022 Bear Cycle. That is basically 3 occasions. The RSI is very close to the 30.00 oversold barrier and as the 1D MA100 supports, it makes it the most optimal long-term buy level on a 2-month horizon.
Even though it has been mostly trading sideways within the High Volatility Zone, on RSI terms, it is comparable to all 2022 Lows that bottomed out on an oversold 30.00 1D RSI and started an aggressive rally in the form of a Rising Wedge.
It's a beautiful chart. You have a very good use of technical analysis tools. When you analyze the long term, do you consider the fundamental analysis?
JoeChampion
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I agree on indices bullish bias!
gvoommen
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World class analysis! Well done!
Gold-Tech
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Thanks for sharing. Accurate analysis
RLinda
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Great chart, very useful for assessing the market situation, thanks for sharing)