DOW JONES Technical view on what chart is trying to say.DJ:DJI
A reliable thing on which almost all investors believe in to know the trends of the market weather it will be upside or in the down side in the short term. so here it is a basic outlook of what I think looking at the chart of our fav index Dow jones which tell us so many things at ones and sometimes says nothing.
This is the time where we have to understand it better that market condition based on the economy level is very weak we cannot expect a big really from here to the upside even after it has tested its important trendline recently on the 15th of march after 5 days of collapse of the SVB (silicon valley bank) after which common expectations should be of a crash in the market which has not been seen yet or i guess it has been just postponed for a while by the US fed by promising all its customer that they will get there deposits back that too 100% of the amount they have with the bank. and 97% of account there had more deposit than the amount that is insured by the government at the time of collapse of any bank. so to the point to fulfil the promise of the government at the time of inflation and economic crises nearly already smart ass US government printed more dollars in order to give it back to the depositors and maintain there promise as well as trust of people on banking system.
Above phase is just to make you understand the economic outlook at this period of time because based on economic factors only technical theory can be supported. now coming to the technical part of the index as we were discussing above on 15th of march as you can see on the chart important trend line has been tested once and then it has started moving upwards which is supported by the fed news of printing more notes and pumping it in the economy. after the support now price will tell the next resistance level of around 34500. we can consider a short term upward move due to the extra dollar printing up to 36000 and 36800. this is same situation as we saw in the times of pandemic when people got cash credits on which market reacted positive and gave us a big bull rally and new highs. we cannot expect new high because now the situation is same but not the economy, there is inflation now which was already at high and expected to go more in coming time of June and July and then soon we see a correction flush of all the extra money and a red color splashing all over the markets.
This was my over look of Dow jones on bases of economic and technical view hope this can help you read the chart more easily.
Thankyou,
