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  • Dow: Weekly Chart-Showing The Structure of The Market

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    The weekly Dow Jones Industrial Average chart shows a bullish market structure. Every major high and low is higher than the previous ones, and the Dow has retraced over 61.8% of losses from the 2007-2009 bear market, indicating a strong upward move. The index has stayed above a down-trending line broken 8-10 months ago. Immediate resistance levels are at 11,900-12,000, 12,300-12,500, and 13,100-13,300. The bullish trend remains as long as the Dow stays above 10,700, which is the major support level.

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    The weekly Dow Jones Industrial Average chart shows a bullish market structure. Every major high and low is higher than the previous ones, and the Dow has retraced over 61.8% of losses from the 2007-2009 bear market, indicating a strong upward move. The index has stayed above a down-trending line broken 8-10 months ago. Immediate resistance levels are at 11,900-12,000, 12,300-12,500, and 13,100-13,300. The bullish trend remains as long as the Dow stays above 10,700, which is the major support level.

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    9 views1 page

    Dow: Weekly Chart-Showing The Structure of The Market

    Uploaded by

    lukskywaker
    The weekly Dow Jones Industrial Average chart shows a bullish market structure. Every major high and low is higher than the previous ones, and the Dow has retraced over 61.8% of losses from the 2007-2009 bear market, indicating a strong upward move. The index has stayed above a down-trending line broken 8-10 months ago. Immediate resistance levels are at 11,900-12,000, 12,300-12,500, and 13,100-13,300. The bullish trend remains as long as the Dow stays above 10,700, which is the major support level.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
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    DOW: WEEKLY CHART- SHOWING THE STRUCTURE OF THE MARKET

    Having a clear understanding of market structure helps to distinguish information from noise and a I
    have used a weekly chart to explain it. Following points to be noted:

    • Every major high and every major low is higher than its previous high or low – A sign of bullish
    structure.
    • Dow has retraced MORE than 61.8% retracement of the entire bear market decline of 2007-09-
    Strong up move.
    • Down trending line has been taken out almost 8-10 months back and index has never been
    below that since then – Bullish.
    • Immediate RESISTANCE is defined by the coloured trend lines I marked on charts.
    1st is maroon horizontal line of 11,900-12,000, the level from where the major capitulation of
    2008 occurred.
    2nd is 12,300-12,500 defined by the red trend line.
    3rd is the green trend line around 13,100-13,300.
    • Major Support: For the bullish trend to be intact it should not fall below 10,700.

    Conclusion: TREND IS BULLISH AS LONG AS PRICES DO NOT FALL BELOW


    10,700.

    Regards,
    ANINDYA BANERJEE – anindya@kshitij.com

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