Tough Dow Jones seems overvalued creating new support levels, still, traders are keen to see Dow Jones Industrial Average ”round numbers”. Will Dow Jones hit 20000 levels?
16 December, AtoZForex – The Dow Jones Industrial average on Thursday closed at 19,852 up 0.30 percent after bit bounce back due Fed rate hike news. The energy and utility sector boomed again. Moreover, Nasdaq Index and S&P 500 index also outperformed. Nasdaq surged 0.37 percent to 5456.86 up 20.18 points. The S&P 500 index also surged 0.39 percent to 2262.03 up 8.75 points.
Will Dow Jones hit 20000 levels?
The question arises in the mind of every trader is Will Dow Jones hit 20000 levels? But if yes, then When will it reach. On a short term basis, the answer is ”NO” as the Dow Jones is not forming a ”strong support” level and seems overvalued. But for a medium term or long term perspective, my opinion is ”YES”. The Dow Jones Industrial average needs some space for making a new support level after a sharp rally due to US President-elect Donald Trump.
Dow Jones Industrial average Technical analysis
So, my technical analysis is for mid-term perspective. The Dow Jones will touch the ”round number” 20000 levels till coming Christmas and New year 2017. But in a short term, it keeps on trading at the limited zone.
The technical indicators and moving averages signify strong buy for the index in mid-term. Most noteworthy, the relative strength index is 74.718 which is ‘BUY’ and STOCH(9,6) display value of 93.075 which also means overbought. According to Moving average convergence and divergence analysis MACD (12,26) value is 466.190 gives ‘BUY’ signal. In addition, the ultimate oscillator indicator display value of 72.739 which again signify overbought signal. The ATR(14) shows the Dow Jones is less volatile and value is 340.98. The simple moving average for a period of MA200, MA100, MA50 and MA20 is 16909.95, 17717.35, 17861.24 and 18578.00 respectively. All the moving average gives ‘BUY’ signal.Furthermore, the support levels and resistance levels are S3 18802.14, S2 18993.44, S1 19375.14 and R1 19948.14, R2 20139.44, R3 20521.14. All the indicators display ‘BUY’ signal and the index is highly bullish in the mid-term.
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