Dow Jones US30: Potential Crash?
Currently @ 34645
This is a long term analysis on the Dow Jones
In the month of May we have seen high volatility in the Dow Jones, which was
fueled by inflation fears in US, seeing the Dow lose +1500 points just in 2 days
Though the Fed has assured the public & investors that they have everything under
control & their tools will be able to manage any outcome. Regardless of this statement
some still fear the worst & predict another market crash due to hyper-inflation if the
Fed's tools fail.
That been said lets look at what technical analysis is showing us @ the moment.
We love to use Harmonics as they help us spot reversals and help us capitalize on them
before they happen. Do note Harmonics are not always accurate just like any other indicator
but their accuracy is notable.
Now looking @ the 1W / weekly chart we have a bearish harmonic, though not yet confirmed
But this shows a possible reversal & if we look @ the last bearish harmonic on the 1W chart
is was last year Feb - March whereby Dow Jones fell by 10,000 points due to the pandemic
Now if history repeats itself & we see another fall this time due to something else
e.g. hyper-inflation we would expect Dow Jones to fall to at most 23,000 before
recovering. The last Bullish Harmonic is based on our prediction.
link to previous analysis below
Do note this is just an analysis based on technical analysis & current events. All investments involve risk, our analysis and trading strategy does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make.
This is a long term analysis on the Dow Jones
In the month of May we have seen high volatility in the Dow Jones, which was
fueled by inflation fears in US, seeing the Dow lose +1500 points just in 2 days
Though the Fed has assured the public & investors that they have everything under
control & their tools will be able to manage any outcome. Regardless of this statement
some still fear the worst & predict another market crash due to hyper-inflation if the
Fed's tools fail.
That been said lets look at what technical analysis is showing us @ the moment.
We love to use Harmonics as they help us spot reversals and help us capitalize on them
before they happen. Do note Harmonics are not always accurate just like any other indicator
but their accuracy is notable.
Now looking @ the 1W / weekly chart we have a bearish harmonic, though not yet confirmed
But this shows a possible reversal & if we look @ the last bearish harmonic on the 1W chart
is was last year Feb - March whereby Dow Jones fell by 10,000 points due to the pandemic
Now if history repeats itself & we see another fall this time due to something else
e.g. hyper-inflation we would expect Dow Jones to fall to at most 23,000 before
recovering. The last Bullish Harmonic is based on our prediction.
link to previous analysis below
Do note this is just an analysis based on technical analysis & current events. All investments involve risk, our analysis and trading strategy does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.