Dow Jones: A 10 year view

Dow Jones Monthly Chart
The monthly chart of Dow Jones gives us a very interesting pattern that is developing over the past decade. The course of Dow Jones could be decided very well in the coming few months, either 6500 or 19000.
In the above chart, DJIA is forming an expanding triangle as represented by the "a,b,c,d,e" points. Also, it is in a rising wedge as seen by the pink and yellow channels. The expanding triangle is over the past decade while the wedges are over past 2-3 years. Strong resistance is at the upper channel of the a-d extension at 16500 while the downside target is the a-c-e extension close to 6300-6500 levels as of now. If in the coming month, DJIA breaks below 14900, the target is 14000-14100 (Pink). Strong support is seen at 13800-14000 range at the 36MA (Monthly). The target of 6000 levels open only if we break 13500 levels. On the upside, if DJIA breaks above 16100 by finding support at 14900, the upside then opens upto the a-d extension of 19000.
Powered by Blogger.