Friday’s Technical Outlook For DJIA (.DIA)
US30 Index (DJIA) CFD closed sharply lower Thursday.
The low range close set the stage for a steady to lower open Friday.
DJIA finished at 17495.84, or -1.43%, thus failing to break above 17900-18000 as mentioned Thursday, and faded. A further decline to 17300-100 can be seen in Friday’s action.
Stochastics and the RSI are turning Neutral indicating that a high has been marked
Multiple closes above the 20-Day MA crossing are needed to confirm that a low has marked.
If DJIA continues the decline off of its Nov high, the 38% Fibo retracement mark of the August-November rally crossing is the next Southside target.
As I write this report the DJIA Mar 16 futures are trading at: 17,389.00 -54.00 17,437.00 17,484.00 17,376.00 01:18:31
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”
Have a terrific weekend.
West Brook Radio