DOW JONES (DJIA) – Does Bullish Justified?

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  • Previously we maintained our bearish view on Dow Jones ( DJIA) as price still maintain below reversal level and we expected closing of November could be the confirmation of bearish direction for Dow Jones
  • However after Jerome Powell dovish comment Dow surges up for almost more than 500 points and monthly closing will be insignificant for bearish to be confirmed as price close above previous bearish monthly candle. Thus monthly closing for December or January could be significant for direction of Dow either change to bullish or bearish
  • From weekly chart above sell signal still valid as price still maintain below reversal zone and current price still lingering inside dominant bearish candle
  • We still maintained our bearish projection that price could reach 23000 level as immediate target

 

Daily

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  • Daily view still bearish as RSI level still maintain below 50 level
  • Current move estimate as corrective move as price still maintain within 26000 to 24000 level
  • Estimate current pattern is flat corrective which is current upward rebound is temporary and price could reach previous high of 26300 before continue moving south
  • Our bearish target still maintain 23000 as immediate target

Hourly

  • Price almost reach RSI overbought level
  • from current sub wave pattern estimate as impulsive 5 wave of c (flat corrective pattern)
  • Price could reach 26300 or retesting upper trendline around 25600 before going south
  • Bearish projection maintain to reach 23800

 

Change of projection

  • If price manage to  break 26300 handle, bullish will continue upward and estimate 30000 -32000 could be next destination

 

The above references the authors opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.

Ahmad Lokman graduated in Energy System Engineering from Fachhochschule Hannover, Germany. He is very experienced in power and energy sector for working as an engineer for more than 5 years. He started trading in currency, equities and futures since 2013. He combines Elliot Wave analysis with price action and fundamental drive to understand market move and projection prior to position the trade. He is now a licensed representative from Security Commission Malaysia and attached at Malacca Securities Sdn Bhd. He manages his own funds and also a proprietary trader of several Forex Brokers. He conducts investment classes and personal coaching for retail clients from all over Malaysia, and has made appearances on business TV, and gives talks to government agency regarding investment risk and potential. Ahmad Lokman is a holder of STA diploma (MSTA) with the Society of Technical Analyst (STA), United Kingdom. He  is a professional member of the Malaysian Association Of Technical Analyst (MATA).

TA certification: MSTA, CFTe

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