US 30 Price Behaviour Analysis - Dow Jones is currently trading at 40,2584
- DOW showed us a major sell-off as well where all its major constituents getting slaughtered
- Dow still has a better price action when compared to SPX & NAS
- Dow is also waiting for the CPI print to be laid out and then only we will see a possible bounce back
Dowjones
WALMART: Bearish: Overbought alert: Impact on Dow JonesWALMART: Bearish: Overbought alert: Impact on Dow Jones
Be careful with Walmart as you can see cocoa and st microelectronic also rose to very very high historical levels and look at the correction that we had immediately after at least 40% drop
This action can have a significant impact on the Dow Jones
A strong correction could lower the DJIA index
I alert you on this I alert you especially on the notion of "stock market cycle" and "seasonality"
Walmart is overbought you just have to look at your technical indicators RSI, ROC, Stochastic, exponential moving average, Ichimoku, Fibonacci retracement.
We could go much much lower so be careful this action is overbought
Monitor your above-mentioned indicators.
A SHORT TRADE SETUP - NIFTY50NSE:NIFTY
❇️ Good trade setup in Nifty50.
❇️In daily time frame there is continuous buying. From straight 14 days. Not a single candle closed in red.
❇️ Now as per the pmi data of us. (Ecomomy) Above estimate which is not good for the us markets. Thats why dow jones crash more then 700 points. And nasdaq slip over 600 points.
❇️ Nifty forming symmetrical triangle pattern in 15 mint chart. As per the gift nifty shows 120 points down we can expect a down fall from this pattern. Wait for 5 mint candle closing near entry point.
❇️ Stopploss should be slightly above previous closing.
❇️ Achievable targets are. 25155-25125-25025.
❇️use your trailing stopploss after seeing profits.
👉🏻 @thetradeforecast 🇮🇳
Dow analysis for the week starting 29th july 2024.Dow on daily chart looks bearish. Sell on close below 39800.
On one hour chart it is bullish but being resisted at 40750 levels.
for Monday
Buy above 40775 . book profit at 50/100 points depending on your risk reward levels or trail with stop loss.
Sell on close of one hour candle below 40370 .
Ramakrishnan
GOOD TIME TO SELL DOW JONES ?Symbol - DJI
Dow Jones is currently trading at 39850
I'm seeing a trading opportunity on sell side.
Shorting DJI at CMP 39850
I will be adding more if 40050 comes & will hold with SL of 40200
Targets I'm expecting are 39115 - 38585 - 38175 & beyond.
Disclaimer - Do not consider this as a buy/sell recommendation. I'm sharing my analysis & my trading position. You can track it for educational purposes. Thanks!
BHARTIARTL SHORTBharti Airtel has finished Wave 5 according to the Elliot Wave Theory and is poised for a correction. We're currently anticipating a strong follow-up candle to the recent Lower High (Spinning Top Candle), which could signify a trend reversal.
ADDITIONALLY, ENDING DIAGONAL TRAIANGLE CAN ALSO BE SEEN.
Historical Impact of Fed Interest Rates on Dow JonesThe current market cycle looks eerily similar to the 2005 - 2010 era.
Dow started going up after the last rate hike in expectation of a rate cut and eventually peaked around the time the cut started i.e. Sep 2007.
Very similar behaviour is evident in current cycle where market has been rising since the last rate hike. If the Fed cut is expected in June 2024, then there is still some upmove left, but we are close to the top.
P.S.: 1: Numbers mentioned are the rates after the said action.
2: Similar price action was developing in 2015-2020 period, however, it can't be considered as a valid reference on account of COVID crash.
US 30 Trade Idea Setup - Dow has been moving impulsively for the past months
- The important outlook here is that the trend is slowing down and one rebalancing is needed
- You can keep longing as long as Dow doesn't invalidate 38,900 post that you still need a confirmation
- Calling the TOP out here is stupidity
- follow the trend and long whenever you see deep retracements
US 30/ Dow Jones 1D Trade Setup - The US Index is currently trading on its All-Time High
- From a Trade Perspective, I would like to wait and watch out what the FED delivers in the FOMC statement
- The rate-cut bets are now fading away and making it look tough for traders that the FED will cut rates
- Inflation is currently sitting at 3.4%
- Cutting rates fundamentally doesn't look feasible as long as the FED doesn't achieve its target of 2%. We can see a mid-cool-off when FED achieves 2.5% once cut and maybe aggressive hikes post that along with some pause
- From a Trading Perspective, I would like to wait for a liquidity grab and then execute orders depending on the price action
- The inefficiencies currently look a little untapped, once the price taps it, I will start looking for longs
- DOL on this still needs to be tapped before you look for long
- Shorts on a scalp basis are preferable but don't swing short in a bull market
Q&A_ Is Dow Jones and global markets ready for a freefall_ 2?Namaste!
I have been pessimistic about the bull market since Oct 2022 when Dow Jones fell into bear market for the first-time (i.e. closed below 20% levels from all time highs).
S&P500 has been closing below 20% bear market level in June 2022, Sep 2022 and Dec 2022 respectively. (Please read earlier article of the same name which I posted on 7 Nov 2022).
There are mainly 3 reasons I strongly think that market have a pending correction of more than 30% from all time highs.
1. Fastest bear market recovery since decades: You know, bull markets and bear markets have some unique behavior which they follow very often. Bulls move price very slowly upwards. but bears move prices very very fast on the downside. What do you think, about this quick recovery of the bear market (year 2020 recovery). This isn't a behavior of the bull.
Well this has happened mainly due to following reasons:-
A. Lowering interest rates near zero by the US Fed to stimulate the economy, again.
B. They deposited dollars directly into the pockets of it's citizens. Money had to go somewhere. So, it (money) went in "spending" (resulting in profits numbers for corporations), "investments" (real estate, various assets and stock markets), etc. "Spending" fueled demand in the economy, creating the inflation (which is highest since decades) in many countries.
C. They printed around 33% dollars by issuing government bonds to US Fed (a way of introducing more dollars into the economy).
D. Most of this money doesn’t exactly go into circulation within the public and remains electronic. The US government technically owns these assets(stocks, etc)/treasuries and they can always sell them back to the banks when the current prices match those of pre-March 2020. Hence, the money was created as a way of making a buffer that allows the economy to absorb losses while it recovers (source: mediumdotcom).
The US government will eventually sell stocks in it's portfolio and other assets to the banks, investors, which will lead to Dow Jones falling.
2. Breakout in the interest rate cycle of US Federal Reserve rates (refer "https://tradingeconomics.com/united-states/interest-rate"). Interest rate has been kept "close to zero" since the sub-prime loan mortgage crisis in the year 2008-09. If the dollar in the market is very easily accessible due to very low interest rates (like borrowing from banks to buy a car, home, spend on unnecessary things, etc), it stimulates the economy by increasing demand .
It's a good step for the growth of Economy, BUT it creates inflation (sometimes out of control, sooner or later), since everybody is demanding the limited goods or services by borrowing from the banks.
Central banks come here, and increase the interest rates. Now, since the interest rate is higher, people will have to cut the spending (mortgage loan payments, credit payments, etc) and immediately stop borrowing more.
The inflation is around 4 decades high in US, and couple of decades high in UK, India, Etc. To counter this, central banks will keep increasing interest rates to withdraw "easy dollars" from the market.
Concluding, US Fed interest rate above 5.5% may cause the next bear market.
3. Double-top pattern (in the making):-
The black horizontal line indicates a 20% (bear market) level. As you can see in the charts, it has created a bull flag pattern. Breakout above the pattern can take the index to 36450 or test the all time highs. The market need some levels (or history) to take the next decision. Market will form a double top pattern before falling. Every trader whether retail or institutional, is a human. So, we need some levels (based on history and facts) to guide us for the future step. That's why Double top or double bottom pattern works so nicely.
What can happen next? Well, the market can breakout of the bull flag (& symmetrical triangle) pattern to reach 36450 levels. The person (traders as well as investors) who were in a hindsight because of no visible top, will try to book profits/exit the market near that level.
Concluding, Dow Jones is in a medium term uptrend till that level.
Disclaimer: The above article is based on my understanding and experience in the markets. Please do your own analysis and/or consult your financial advisor before investing or trading. The sailing in the markets without knowledge and risk apatite could be hazardous for who don't know swimming or without life jackets.
Q&A_ Is Dow Jones and global markets ready for a freefall?Namaste!
US Markets substantially affect global market and their indices. There are two main indices which I track most often. DJI (Dow Jones) and SPX (S&P 500).
I expect it to be in a downfall in the coming weeks/months.
I follow a rule of thumb for a reversal (respecting support or resistance) is that it must close below low of the resistance testing candle within the next 3 candles.
My understanding says, "there is a >60% probability of prices moving in the candles closing direction if the prices consolidate". Consolidation can happen near the resistance levels. So, it means there is a <40% probability of reversing (respecting resistance) if the prices consolidate. The logic is very simple. If the sellers were powerful enough, the price will fall quickly, whereas consolidation indicates their unwillingness to sell or more buying pressure than selling at the level.
So, the 02 Nov candle closed below the level, hence the selling pressure is strong here meaning more probably price will fall. It is my opinion because I said this happens 60% of the time. This could be that 40% when I am wrong.
Disclaimer: The above written article is based on my understanding and experience in the markets. Please do your own analysis and/or consult your financial advisor before investing or trading.
Dow jones industrial chart studyDow jones around 37600
240 mins time frame
Ascending parallel channel breakdown
big fat bearish candle formation on breakdown of channel structure..
now till the high is not crossed and sustained,,
index have possibility to retrace by 50-61% of last furious rally
and note one thing retracement will be sharp
till it below high levels view remains valid
NASDAQ chart study IXICNasdaq ixic index at 15050
Daily time frame
Bearish wolf wave pattern formation on long time consideration ,
ascending sharp wedge on smaller time consideration
Wedge is already broken and reversal from above the wolf wave resistance line is in progress,,
if this wolf wave has to progress as per theory, than index might head towards levels of 13700-13500.
in between if needed modification can be done,,
US 30 - At Crucial levelThe index has been traveling in a rising channel formation for the last year. This time it reaches the top edge of the channel. If doesn't sustain the above, a downward journey is possible.
We just see our risk-reward. Keeping a stop-loss of around 36400 on a closing basis for two days. or according to one's risk management. target seems 35700 or more.
The setup fails if sustained above the channel.
This is only for learning and sharing purposes, not trading advice in any form.
All the best.