By Waves Strategy Advisors, For more information visit www.wavesstrategy.com
In 2008 world equity markets crashed due to financial crisis and felt the heat of recession. In this period, DJIA moved lower from 14250 to 6250 i.e. more than half in just one year. Thereafter, majority of the indices bounced back on upside sharply and breached the important high made in the year 2008 and continued the uptrend. DJIA is one of the index which has been performing exceptionally good since 2009 and currently moving near the lifetime highs.
In our view, sharp move on upside in DJIA from 2009 seems corrective in nature rather than impulsive. This corrective move has formed expanding pattern. Below we have shown DJIA Daily chart picked up from the Global report- The Global waves published on alternate days.
DJIA Daily Chart: Medium term chart
Wave Analysis:
Below write up is picked from the previous report
For DJIA, in the previous two trading session prices moved lower from the lifetime high of 15558 and closed on negative note. As seen in daily chart of DJIA, prices are moving higher in the upward sloping blue channel since September 2012 and currently it is in the last leg of intermediate wave e of primary wave (D).
Prices were moving in the stiff range of 15400-15658 from last two trading sessions and paused the up move. Momentum indicator RSI exhibits the negative divergence and moved lower. However….
As per wave perspective, prices have ended wave x near 14380 levels and currently moving higher in the form of wave a triple correction (a-b-c-x-a-b-c-x-a-b-c).
DJIA is in a strong uptrend. Elliott wave counts and channels suggested that more potential is left on upside in DJIA. Do not catch the top in strong bull market and trade objectively. To know the next important levels and Elliott wave counts subscribe to our global report – The Global Waveswhich also covers Comex Gold, Silver and EURUSD. For more information visit to http://wavesstrategy.com/index.php/store.html
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