• 4 hours Rhodium Climbs Reaches Record Highs
  • 21 hours Tesla Tumbles After Battery Day Fails To Impress
  • 1 day Three Energy ETFs To Watch This Decade
  • 2 days What To Do With $2 Trillion In Suspicious Bank Transactions?
  • 3 days How The Stock Market Predicts Electoral Victory
  • 3 days Tesla's "Battery Day" Could Deal A Blow To Cobalt Miners
  • 4 days New TikTok Deal Hopes To Bypass National Security Concerns
  • 4 days Where Will Gold Go From Here?
  • 5 days COVID-19 Is Fueling A Pastic Waste Crisis
  • 5 days Gold Output Set To Decline
  • 6 days Uber And Lyft Look To Go Electric
  • 7 days COVID-19 Is Crushing Palladium Demand
  • 8 days This ‘Once-Boring’ Tech Company Is Now Super Hot
  • 9 days Will Air-Based Protein Be Our Future Food?
  • 9 days Google Pledges To Go Carbon-Free By 2030
  • 10 days A New Twist In The TikTok Saga
  • 10 days Gold Inches Closer To $2,000
  • 11 days Delivery Drones Are Coming Sooner Than You Think
  • 11 days Traders See More Volatility Ahead For Commodities
  • 12 days How COVID-19 Is Transforming The World's Sovereign Wealth Funds
Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

  1. Home
  2. Markets
  3. Other

The DJIA is Nearing Intermediate Trend Channel Resistance

For the last 17 months, the DJIA has been in an intermediate advance. This advance started in OCT 2004 at the 9708 low, as shown in CHART #1. Since that low point, the DJIA has posted a series of higher and higher highs and higher and higher lows, to mark this progression. Also notice, that all the highs and lows are clearly marked in black lettering, except for the 11334 March 2006 high that is marked in red. Why is this?

Because, 11334 represents the most immediate major support area in the intermediate term, and looks to be the pivotal point between bull & bear.

If you look at Weekly CHART # 2, notice that an intermediate term 'trend-channel' has emerged, bounded by a perceived upper return line, and the lower boundary or parallel line. Taking a closer look at Weekly Chart # 2, notice that a support line has been drawn across the March high of 11334. Why? To show its significance; below this line, support has technically failed and is starting to look bearish,... above this line, the market stays bullish. Right?... Maybe!... Question: What if the DJIA manages to to rally 100 points or so? Will resistance become a factor above, like support is a factor below? If so, where is the first level of resistance to be found? Well, in the Classical Bar Charting sense, there is no resistance above 11334 on the weekly chart.

But, in another sense, if you turn to the next chart, Weekly Chart #3, you will see where the next possible resistance area for the DJIA may be found. In Weekly Chart #3, notice the bold overhead return line. Also notice, how this line slants upwards and intersects the hypothesized 11500? price area, for next weeks price bar. Could this price area just above, be 'resistance'? Or in another sense, could the 'return line' be the final battle the DJIA will have to tangle with in this on going 'intermediate-bull-trend'? How long will the DJIA be range bound between support at 11334 and the upward slanting 'resistance line'? We Will see.

 

Back to homepage

Leave a comment

Leave a comment