The Dow Jones Technical Analysis - A Specialist in Technical Analysis

For Jul, 14 2015

(Individual Chart Analysis)

This is a no-frills analysis.  It is not designed to look good, it is designed to be effective. 


Summary of the Technical Analysis for the DOW

(This takes into account the near term, mid term, and longer term charts)

Our combined analysis for Tuesday tells us to expect the market to begin the day with a bias to decline and a retracement back down towards the recently broken midterm downward sloping resistance lines, which have now been converted into support, appears likely.  However, if those levels remain intact as converted support we should be prepared for much higher market levels afterwards because the longer term charts now allow for another test of recently broken longer term support levels.  Only if the market breaks back below the converted support levels in the midterm charts would this change, but for now our combined analysis, although it tells us to expect the markets to begin the day with a bias to decline on Tuesday, also tells us that the declines will be short lived unless the converted support lines in the midterm charts break lower again.  In other words, if initial support as that is defined in our combined data tables remains intact we should be prepared to buy the dips and expect the market to test longer term converted resistance lines again.

Initial intraday trading parameters for the DOW exist between17920 - 17988
If 17920 breaks lower expect 17420
If17988breaks higher expect 18283
Otherwise expect17920 - 17988 to hold

If 17920 remains in tact as initial support, expect the market to increase to 17988. This reflects a tight near term down channel. However, and in line with our combined analysis, if 17920 breaks lower instead expect the market to decline to 17420 before it stabilizes again.


NEAR Term Analysis

Our combined near-term analysis tells us that the market is in an upward sloping near-term pattern but the resistance lines of these upward sloping channels have been tested and thus far resistance is holding.  But if the market continues to hold near term resistance we should expect it to begin the day with a bias to decline as it opens on Tuesday and we should expect a progression down towards the upward sloping support lines.  If the upward sloping resistance lines break higher, on the other hand, much more aggressively sloped upward sloping near-term channels are likely to follow.

NEAR Term Support for the DOW exists at 17942

NEAR Term Resistance for the DOW exists at 17988

Dow_5_day


MID Term Analysis

Our combined midterm analysis tells us that the midterm downward sloping resistance lines that we have been targeting are breaking higher.  That is a bullish indicator and it suggests higher levels accordingly.  Our combined midterm analysis tells us to expect the market to increase, possibly aggressively, if the already broken midterm downward sloping resistance lines, which have now been converted into support, remain intact as converted support.

MID Term Support for the DOW exists at 17420

MID Term Resistance for the DOW exists at 17900

Dow_30_day


LONG Term Analysis

Our combined longer-term analysis tells us that candles are developing that would engulf the DOJIs from last week already and if this week ends anywhere close to current levels that positive engulfing candle will suggest higher market levels.  Our combined longer-term analysis opens the door for a retracement higher back towards recently broken support levels accordingly.

LONG Term Support for the DOW exists at 17142

LONG Term Resistance for the DOW exists at 18283

Dow_1_year