End of Rally: Four technical indicators are pointing towards end of its six year rally –
There is an immediate 61.8% Fibonacci support at 16450, if Dow closes below it then exit from long positions. It may retreat to near 13000 by the end of 2015 from its current level of 16430. Hold investments if Dow sustains above it. If Dow bounces above 16730, it may try to resume its uptrend. There may be a rally up to 17000 but uptrend will resume only if DJI can sustain above that level decisively.
- RSI divergence in monthly chart is very clearly indicating a distribution phase in DJI which may lead to a long term downtrend
- Failure to cross 261.8% level at 16900 indicates DJI may retreat from here. DJI strongly dropped below this level in July, and now in August it seems difficult that DJI will be able to close above it
- DJI will breach support of Andrew’s Pitch Fork if August closing is below 16600, indicating end of this up trend
- Cycle indicator has indicated short term down trend
There is an immediate 61.8% Fibonacci support at 16450, if Dow closes below it then exit from long positions. It may retreat to near 13000 by the end of 2015 from its current level of 16430. Hold investments if Dow sustains above it. If Dow bounces above 16730, it may try to resume its uptrend. There may be a rally up to 17000 but uptrend will resume only if DJI can sustain above that level decisively.
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