Tuesday, February 6, 2018

Dow Jones - Key Support and Resistance Levels

Dow Jones -  Dow plunges 1175 points yesterday 5 Feb 2018, the largest single day loss in history. While the magnitude of the loss was big and percent loss is  small compared to the nearly 20,000 points gain since the bull run began in 2008. Many investors who missed the rally are already tempted to start buying. Is it time? The secret to a global stock market rebound depends on this chart. Dow at 24345 sits on the 100 days MA. The next support at the 200 days MA  is at 22800, Dow  could rebound from there but it is only a `Dead Cat` bounce. The first key level where a sustainable rebound will take place is at 21600. This is where the 2 major trend channel lines  merged.  The next to key support level are at 20700 and 19400. If a full blown market rout take place, this blog has an Conviction buy level at 17600.


All posts and charts are for educational and illustration purposes only

1 comment:

  1. Hi Robin, what do you think of the recent recovery of the US markets? Is it a chance to sell on strength?

    ReplyDelete