Will bulls try to defend DJIA with Fed’s meeting around the corner?
“Dow Jones roiled up US equities market with its stellar performance, never been seen since 1976.”
Dow Jones Industrial Average clings to its recent high as investors look forward for Federal Reserve’s interest rates decision later this week. The index gained more than 14% in October, its biggest gains since 1976 as Feds may not be as aggressive in terms of policy tightening as the market expected to be. For the time being, we expect the market to move in cautious with a mild pullback while adopting wait-and-see approach prior to Fed’s decision.
Quick recap on DJIA
Sadly, the index continues to remain within the descending channel, an ongoing struggle for long-term bulls.
DJIA Weekly Technical Analysis
DJIA recovered significantly throughout October, hitting a soft cap near 32824 that coincided with top level of descending channel.
DJIA Daily Technical Analysis
Recent pullback from 32824 shows corroding momentum among the bulls, suggesting possible pullback in the short-term.
ORDER: SELL STOP
STOP LOSS: 32900
Target 1: 32000
Target 2: 31560
ZFX Analyst’s Comment
The index shows prominent signals for a possible pullback in the near-term. Thus, a close near 32500 may signify such hypothesis.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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