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Showing posts with the label trendline

State of Dow Jones - Calendar Week 41 2021

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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

Dow Jones roundup

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A quick roundup for Dow Jones Dow Jones Market Breadth With this blog post I will provide the latest market breadth data for the Dow Jones index. At the time of writing, the data for today was not delivered yet by our provider, this is why today is not yet included yet in the dashboard. Here is the long-term view of Dow Jone's market breadth data (image provided by https://www.advance-decline.net ):   The McClellan Summation Index for Dow Jones allows comparing the strength of the summer months with today's situation. We can clearly see that bulls have their troubles with the Dow Jones index. Here is the middle-term view of Dow Jone's market breadth data (image provided by https://www.advance-decline.net ) so we can get into detail: The McClellan Oscillator for Dow Jones recovered and is now above the zero line again. This is a slightly bullish sign. The McClellan Summation Index stopped declining but still has very low values. Maybe we will see a bottom here. Now to the in

Dow Jones sprinting back to neutral zone

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Dow Jones sprinting back to neutral zone Not there yet: After after a quick test of an old high from April (!), the Dow Jones aims to return to a neutral zone. Let's look at both the technical and the market breadth aspects. Technical perspective on Dow Jones Technical chart for Dow Jones created on tradingview.com   The Dow Jones fell through the lower Envelope bands and touched the old all-time high from April at ~ 33 623. Technically, the Dow Jones was in a short-term oversold zone for three trading days.   While the dip from 16th July ended at the rising trendline and was a healthy "higher low", this time the dip left the existing uptrend and also marked a "lower low" compared to the last dip (bearish on short-term). However, this was still an "higher low" compared to the dip we've seen on June the 18th (bullish on middle-term).   The price tried to return to it's SMA 20 but failed at breaking through the barrier at ~ 34 850 / 34 900. Also,

Mini break for NASDAQ 100 - for now

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Mini break for NASDAQ 100 - for now The NASDAQ 100 took a mini break from chasing new record highs and is now trading within a narrow range. Technical chart (daily) for the NASDAQ 100 Technical chart (daily) created at tradingview.com The technical chart with the simple Envelopes reveals that the index is no longer considered as overheated and the RSI confirms this. The distance to the SMA 20 remains high but declined a little bit. One earlier high at 15447 serves as a level of confidence while one level above, at 15526, proved itself as a level of support, setting the lower limit for the current trading range.   As long as the index remains above 15 447 on the daily chart, there is nothing to worry about.   Technical chart (hourly) for the NASDAQ 100   Technical chart (hourly) created at tradingview.com   Talking of trading range - the hourly chart of the NASDAQ 100 with modified Evenlope settings gives a nice impression of the current range where a mini break and mini consolidation a

End of correction for Nikkei 225?

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End of correction for the Nikkei 225? Technical chart of the Nikkei 225, the leading stock index in Japan Source: tradingview.com The Nikkei 225 has seen several strong days after bouncing from the support level at 27 000. During the last trading days, it looked like the price will stop at the upper border of the Envelopes (see technical chart above). However, there was some tailwind from politics today which led to another strong trading day. In my version of the technical chart, the Nikkei 225 stopped at the limiting trendline. When looking at the Envelopes, the index is now overheated. The next two treading days will show if the Nikkei 225 will keep its momentum and overcome the limiting area. If so, and if confirmed by another candle, the index will have some potential to maybe 30 700 on the middle timeframe. However, with a distance of roughly 5,7% from the SMA 20, it is unlikely that the index will continue at this speed.  Market Breadth Data for Nikkei 225 The Advance Decline fo

Dow Jones somewhat in the middle of nowhere

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Dow Jones somewhat in the middle of nowhere   Technical chart (1h) of the Dow Jones index Source: tradingview.com  The Dow Jones remains on a high level in a sideways phase for roughly 10 consecutive days. The SMA 20 (orange line) works as a stabilizer for now, although we've seen a dip beneath this line during the day. The Dow Jones also moves within a trend channel  (see image above). Right in the middle of this channel another trendline emerged, at apparently the SMA20 and this "middle trendline" come close today. So for now, this area seems to be a strong support.    You know that I am a big fan of the Envelopes indicator, since it is a very simple way to find out if an index is overheated or not. I've added a very simple version of the Envelopes to the chart above. As you can see, it confirms that the Dow Jones seems to be in the middle of nowhere because the price dances around the middle of the Envelopes as well (and the middle is the SMA 20 line). The red line

NASDAQ 100 following a strong trendline

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NASDAQ 100 following a strong trendline I've been covering the NASDAQ 100 multiple times during the last days as you've seen. The reason for this is that this leading tech index shows an incredible strength despite the Tapering discussions and the various risks which emerged during the last weeks. Together with you, I want to understand where the chances and risks are for this index. NASDAQ 100 Chart Source: tradingview.com The image above shows a simple NASDAQ 100 chart with the leading trendlines. As you can see, there is a corridor limited by a supporting trendline and a line which might be a resistance line. The index has touched this upper line multiple times and has been trading just beneath it for four days in a row. I believe that this trendline is of great importance and chances are high that the NASDAQ 100 will not cross it soon (just my personal opinion). At the moment, this trendline also crosses the upper border of the Envelopes, so there is even another resistance