Monday’s Technical Analysis For: DJIA (.DJI)

Monday’s Technical Analysis For: DJIA (.DJI)

US30 Index (DJIA) CFD closed higher Friday on a 2 day bounce off off Monday’s lows.

The mid-range close set the stage for a steady to lower open Monday in New York.

Stochastics and the RSI are signaling overbought but are still Neutral to Bullish indicating that sideways to higher prices are possible near term.

Multiple closes above the 20-Day MA crossing are needed to confirm that a short term low is in.

If DJIA renews its decline off of the May highs, the Feb 2014 low crossing (in the 15,000-15,500 zone) is the next Southside target.

The  Dow Jones Industrial Average (.DJI), also called the DJIA, Industrial Average, the Dow Jones, the Dow Jones Industrial, the Dow 30, the DJIA, or simply the Dow, is a stock market index, and one of several indices created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow.

The DJIA was 1st calculated on 26 May 1896.

Currently the DJIA is owned by S&P Dow Jones Indices, which is majority owned by McGraw-Hill Financial, it is the most notable of the Dow Averages, of which the 1st (non-industrial) was 1st published on 16 February 1885.

The averages are named after Mr. Dow and one of his business associates, statistician Edward Jones.

It is an index that shows how 30 large publicly owned companies based in the United States have traded during a standard trading session in the stock market.

The  Stochastic Oscillator

The theory behind this indicator is that in an upward-trending market, prices tend to close near their high, and during a downward-trending market, prices tend to close near their low. Transaction signals occur when the %K crosses through a 3-period moving average called the “%D”

Stay tuned…
HeffX-LTN
Paul Ebeling

 

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