DJIA (CMP: 16086.4) - is showing
bullish outlook in the medium term perspective.
The above chart
is not exactly correlating with the S&P 500, But in the last few years
directional moments are similar in direction. After the top out at October,
2007 both the charts are more similar in nature.
The price is
forming higher top higher bottom set-up which indicates the bulls are
continuing their momentum. The index is moving within the rising channel line
(Blue line) which is a vital bullish setup. This bullish setup is intact from
March, 2009. Within the broader channel; price has found new directional
channel (Red dotted line). The index is
sustaining above all key moving averages. Short term key moving average of 50
Week EMA is placed at 14877 levels.
Recently the
price has breached the “Running triangle” (Blue Dotted) which is a significant
bullish indication for in the short term and bulls could continue towards the
cluster resistance of 16500 – 17000 levels (Two channels upper lines). Key
bottom is placed at 14700 which is the end “wave e” leg in the running
triangle. The weekly oscillators are placed in overbought zone.
Conclusion: Unless violation of 14700, the bulls
could continue the rally towards the upper resistance line of both the channel
lines; the levels are placed around 16500 – 17000 levels.
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