Dow Jones Industrial A (DJI.NDX)

Short term

Dow Jones Industrial Average has broken the falling trend channel down in the short term, which indicates an even stronger falling rate. There is no support in the price chart and further decline is indicated. In case of a positive reaction, the index has resistance at 40900 points. RSI is below 30 after the falling prices of the past weeks. The index has strong negative momentum and further decline is indicated. However, particularly in big stocks, low RSI may be a sign that the stock is oversold and that there is a chance for a reaction upwards. The index is overall assessed as technically negative for the short term.

Recommendation one to six weeks: Negative

Medium term

Dow Jones Industrial Average has broken the rising trend channel in the medium long term and reacted strongly down. For the time being, it is difficult to say anything about the future trend direction. The price has had a strong fall after the negative signal from the double top formation at the break down through the support at 41938. The objective at 39088 is now met, but the formation signals further development in the same direction. There is no support in the price chart and further decline is indicated. In case of a positive reaction, the index has resistance at 40000 points. The short term momentum of the index is strongly negative, with RSI below 30. This indicates increasing pessimism among investors and further decline for Dow Jones Industrial Average. However, particularly in big stocks, low RSI may be a sign that the stock is oversold and that there is a chance for a reaction upwards. The index is overall assessed as technically negative for the medium long term.

Recommendation one to six months: Negative

Long term

Dow Jones Industrial Average has broken the floor of the rising trend channel in the long term, which indicates a weaker initial rising rate. The price has had a strong fall after the negative signal from the double top formation at the break down through the support at 41938. The objective at 39088 is now met, but the formation signals further development in the same direction. The index has support at points 34000 and resistance at points 45000. The RSI curve shows a falling trend, which could be an early signal of the start of a falling trend for the price as well. The index is overall assessed as technically neutral for the long term.

Recommendation one to six quarters: Hold