Dow Jones technical analysis forecasts using the cyclic theory WD Gann

Gann’s cycles
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Dow Jones technical analysis forecasts

Dow Jones technical analysis forecasts using the cyclic theory of W.D. Gann.

Dow Jones technical analysis
Dow Jones monthly february 2019

 

Dow Jones medium term technical analysis

From 2016 to 2018, Dow Jones Index has taken a strong bullish acceleration reaching new all-time highs: the top of October 2018 was at 26,951.

However, already in October 2018, the American market underwent a first over-balance, a first sign of a slowdown in the medium term positivity that led for the next three months the swing chart in negative.

The 1 X 1 dynamic resistance from the top of April 2011, which constituted the upper band of the bullish corridor, acted as support for the first corrective attempt.

Last October, Dow Jones attempted again to break down the 1 X 1 corner, but It was again rejected by conforming a first distribution area with the creation of a double maximum.

Last December, this support has broken downward at the third corrective attempt: the corrective force has pushed the prices to the next 1 X 1 angular support on the minimum of 21,712 in March 2009.

Now we are seeing a strong positive recovery: we have witness there was a good 7 weeks of consecutive increases on the weekly time frame.

However, there are still obstacles for the American Index that slow down the configuration of a triple top in 26.900 area.

Quarterly Dow Jones forecasts

theory of W.D. Gann.
Dow Jones Index quarterly 2019 february

 

As it is clearly visible on the slide, the 1 X 1 ascending corner from the first quarter of 2009 has constituted an important resistance through the entire period between 2012 and 2018.

The first significant over-balance occurred in the last quarter of 2018. Dow Jones Index is currently in a recovery phase and the bullish pull-back is going to set up a triple top in 26.900 area.

The corrective action will have additional supports between 22,200 and 21,200 area.

Angular resistances at 27.640.

The report was made possible thanks to Top Trader© stock market software.