State of Dow Jones - Calendar Week 41 2021

-
Image
State of Dow Jones - Calendar Week 41 2021 Welcome to the second episode of the blog post series "State of Dow Jones", where we look at the leading US stock index from different perspectives and try to determine how solid the current development is. Technical Chart for Dow Jones Every "State of Dow Jones" blog post should start with the technical chart, so here we go (created on tradingview.com): The Dow Jones overcame the old falling highs and the important resistance at 25 000, now trading at 35 294 points. The index is trading above its SMA 20 again and even went into the upper Envelope band. This means the Dow is slightly overheated and it is likely that the index will show a small pull-back before rising again. The RSI is at 60, three trendlines were identified and crossed during the last trading days. The technical chart provides us with enough confidence to say that the correction might be over and the outlook is neutral, or maybe even slightly bullish. Marke
Post a Comment

Nikkei 225 reaching new lows (20.08.2021)

-

Nikkei 225 index and Advance decline Line reaching new lows

On 16.02.2021, Japan's Nikkei 225 index started its correction on a very high level.
At the moment, the index is trading 12,77% lower than on that specific day in February this year.

Looking at the chart, a new low was reached a couple of hours ago, and even the Advance Decline Line followed the price, also reaching a new low in this correction.
The Advanced vs. Declined data, however, went up during the last trading day.
This doesn't mean anything yet, though.
The McClellan Oscillator declined the third trading day in a row, while the McClellan Summation Index is already on day four of declining.

Although we reached new lows, it doesn't mean that the correction will gain speed again. When looking at the plain candle chart (we don't have that one here, I know), it actually seems like a bottom could have been reached at the LOW of the last trading day (~ 26 978). This seems to be a support level, at it will be interesting to see if it will hold. If not, the index might drop another 11-12%.

The Advance Decline Line reached a new high a couple of trading days ago, while the index itself did not. Some might say we had observed a little bullish divergence, but in this case, I am not sure if it will be of any purpose.

Let's see.

 

 

Comments

Post a Comment

Popular posts from this blog

State of DAX - Calendar Week 36

-
Image
State of DAX - Calendar Week 36 Another seven days have passed since the last episode of our blog post series about the "State of DAX". This time we're looking at a trading week with a small loss (> 1%) while we are in the middle of a period with weak seasonality. Corona, Afghanistan, upcoming elections here in Germany, challenges for the economy, inflation and "interest angst" - there is plenty of reason for investors to stand on the sideline. Oh, and at the end of this month, we will be looking at the DAX 40 instead of the DAX 30. There will be much to talk about in the next weeks!   But let's focus on the state of the leading German stock index by looking at the data. Technical Chart for DAX   DAX technical chart created at tradingview.com   On last Thursday, the DAX touched the lower Envelope band, giving a short-term and small "oversold" signal. On Friday, the index managed to gain some ground again, moving away from the Envelopes, but stil
Read more

State of Dax - Calendar Week 31

-
Image
State of Dax - Calendar Week 31 Welcome back to another episode in the "State of Dax" blog post series. The German stock index DAX climbed again, now residing near its alltime high. It will be very interesting to see if this index will beat its own record although August is a weak trading month according to seasonal statistics. But well, let's see - what is the current state of Dax? Advance Decline Line for Dax, Advanced vs. Declined, McClellan Oscillator and McClellan Summation Index, % of members trading above their SMA50/100/200 Again I took a screenshot of my latest charting dashboard, containing all the interesting stuff for this stock index. Let's check every indicator: The Advance Decline Line is almost a perfect mirror of the index; this supports the current price movements Advanced vs. Declined slowly advanced during the last trading days, almost forming a clean upwards trend. Neutral.. McClellan Oscillator for Dax: Above the zero line again, Slightly bulli
Read more