All posts and charts are for educational and illustration purposes only
Sunday, April 8, 2018
Dow Jones - Why I would be concern if it falls below the 200 Days Moving Average !
The 200 Days Moving Average is considered a key indicator by traders and market analysts for determining the overall long term trend. The Dow has not broken the 100 days MA since 10 Nov 2016 and the 200 day MA since 16 Mar 2015. The last time Dow broke the 200 Days MA was on 20 Aug 2015 and 6 Jan 2016 and on both it loss 10 percent . The Dow chart has not look this bearish for a long time falling from Jan high of 26600 to Feb low of 23290. The current obvious price action of consecutive swing points registering lower lows are indications of more weakness ahead. The current 20 Days MA sits on the 23476 level and if history repeats we could see a 10 percent drop to 21128. My charts are indicating the immediate support of the Dow at 23000 and 21680 respectively in the event the 200 Days MA is breached.