Dow Jones Industrial Average: Bullish or Bearish?


US stocks are in bullish trend, with the Dow Jones Industrial average hitting a record high. Due to Trump’s victory in the election, which has continued to lift the market. Still, is the Dow Jones Industrial average obeying bullish trend on the long run? 

15 November, AtoZForex – US stocks escaped early losses and finished almost unchanged on Monday. Technology companies like Apple and Microsoft took big losses on fears about their overseas revenue, but bank stocks continued to surge along with bond yields. On Monday the Dow Jones industrial average moved up 21.03 points, or 0.1%, to 18,868.69 points.

Dow Jones Industrial Average

US stocks closed mixed on Monday, after the Dow Jones industrial average hit a new all-time high, as investors evaluated the prospects of the economic growth following Donald Trump’s Presidential election win. The Dow gained about 20 points higher, completing a six-day winning streak and closing at a record high, with Goldman Sachs and UnitedHealth Group contributing the most gains.

The S&P 500 closed around opening price, with a 1.7% fall in information technology offsetting a 2% gain in financials. The Nasdaq composite lagged, slipping about 0.4% as Apple and the so-called FANG stocks (Facebook, Amazon, Netflix and Google’s parent firm Alphabet) all fell. Meanwhile, US stock index futures ticked up on Tuesday, a day after the Dow Jones industrial average racked up its sixth straight day of gains.

Bullish or Bearish?

Dow Jones Industrial Average traded at 18,868.89 +21.03 points (+0.11%) on Monday. It has a 52-week range of  15,450.56 – 18,933.6 points with an average trading volume of 91,404,650, with a 1-year return of 9.41%. Since Trump won the US Presidential election the Dow Jones Industrial Average is currently in the bullish trend. Yet, this may continue or not.

Dow Jones Industrial Average

Coming to technical analysis, most of the indicators show a bullish pattern or a ”STRONG BUY”. According to Fibonacci indicator the support and resistance level are S3- 18823.08, S2- 18839.60, S3- 18849.81, R1- 18882.85, R2- 18893.06, R3-18909.58. The daily 50SMA is at 18554.24 points and 100SMA is at 18310.62 points. However, 100EMA is at 18428.45 points. Thus, it is a strong buy according to SMA and EMA analysis.

Now coming to technical indicators, RSI(14) shows a value of 67.675, STOCH(9,6) indicates a value of 99.171, which signify overbought.

According to MACD (12,26) analysis, the value indicates 95.550, which also signify a ”BUY” and CCI (14) shows a value of 81.909, which signals a strong buy, as well.

Dow Jones Industrial Average

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