Stocks have been soaring since Election Day, with the Dow Jones surpassing 20,000 and now 21,000 levels. Here is my March Dow Jones Technical analysis.
02 March, AtoZForex – The Dow Jones Industrial Average jumped above 21,000 level for the first time, as the investors embraced optimism from President Donald Trump and Federal Reserve officials. The blue-chip index surged about 230 points shortly after the opening bell, jumped 1.1 percent to 21,041.
The S&P 500 also surged 1 percent and the Nasdaq Composite hiked 0.9 percent. Bank stocks also surged on Wednesday trading session. Financial shares in the S&P 500 surged 2.4 percent. Moreover, the Bank of America hiked 3.4 percent and Morgan Stanley surged 2.9 percent.
March Dow Jones Technical analysis
The Dow Jones 30 Index performed well throughout the day, but quite frankly I think there’s enough support below to keep this market going upper for the long-term. However, the Dow Jones is far too overextended so a pullback is not only necessary, but it’s very healthy. The EMA 100 is above the EMA 200 line which means the Index is highly bullish. Furthermore, the classic support and resistance levels are S3 19124.87, S2 19477.98, S1 20145.11 and R1 21165.35, R2 21518.46, R3 22185.59. All the indicators display ‘BUY’ signal and the index is highly bullish in the mid-term and long-term.
Dow Jones Monthly Target
My monthly target for Dow Jones is 22150-22300 points for the end of this month. The technical indicators and moving averages signify strong buy signal for the Dow Jones on the daily, weekly and monthly basis. Most noteworthy, the relative strength index is 76.502 which is ‘BUY’ and STOCH(9,6) display value of 87.773 which means overbought. According to Moving average convergence and divergence analysis MACD (12,26) value is 962.080 gives ‘BUY’ signal. In addition, the ultimate oscillator indicator display value of 74.476 which again signify ‘BUY’. The ATR(14) shows the Dow Jones is less volatile.
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