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Technical Analysis DJI : 2020-12-02

Recommendation for Dow Jones Index:

Strong SellSellNeutralBuyStrong Buy

Above 30215

Buy Stop

Below 29215

Stop Loss

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Senior Analytical Expert
Articles 1669
RSI Neutral
MA(200) Neutral
Fractals Neutral
Parabolic SAR Buy
Bollinger Bands Neutral

Chart Analysis

IFC Markets Tech Analysis

On the daily timeframe, DJI: D1 went up from the downtrend and formed a triangle. It must be broken upward before opening a position. A number of technical analysis indicators formed signals for further growth. We do not exclude a bullish move if DJI rises above the last upper fractal and a historical high: 30215. This level can be used as an entry point. We can place a stop loss below the Parabolic signal, the lower Bollinger line and the last lower fractal: 29215. After opening a pending order, we move the stop loss following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. After the transaction, the most risk-averse traders can switch to the four-hour chart and set a stop loss, moving it in the direction of the bias. If the price meets the stop loss (29215) without activating the order (30215), it is recommended to delete the order: some internal changes in the market have not been taken into account.

Fundamental Analysis

Dow Jones Industrial Average lagged far behind the Nasdaq and S&P 500 in growth. Will the DJI quotations continue to increase?

Since the beginning of this year, the Dow Jones index has risen by 5.7%, the S&P 500 - by 15.3%, and the Nasdaq - by 40.8%. All American stock indices have renewed their historic highs. The main reason for their growth is the expectation of large-scale Fed emissions, which will be used to buy back assets (QE) and support the US economy. The decision on additional quantitative easing may be announced at the next Fed meeting on December 16. On December 4, Non-Farm Payrolls for November will be released in the US, which can affect DJI dynamics.

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