Jan 25, 2012

Dow Jones analysis:New high possible in next 2-4 years

Dow Jones analysis:New high possible in next 2-4 years

The Dow Jones index made recent bottom of 6470.11 on 6 march 2009 on the back of Subprime housing crisis and Lehman brothers bankruptcy.
The level it made on 2 may 20011, 12807.36 must cross to blast above to touch and cross life time high of 1 oct 2007, 14198.10 lifetime high.
It has crossed 12724.41 made on 21 july 2011, on on jan 23, 2012 and made high of 12764.41, but failed to close above the 12724.41 level and closed at 12709.20.

So now Dow jones has to cross and close above first 12724.41 and then 12807.36 made on 2 may 2011, a daily close above this will confirm dow Jones up move upto 13412 and weekly close will likely confirm the breach of the all time high made on 1 oct 2007 14198.10 and rise above it.

Dow jones recently made low of 10404.49 on 4 oct 2011, but did not close on low made on the day and closed in positive (green candle) on the recent low day.
It consolidated between 11500 and 10500 in august, September and October months of 2011 before ultimately breaking above in the last week of October 2011.
Encouraging economic data, the decline of unemployment rate to around 8% and the upcoming presidential elections has helped the flow of positive fundamental news. However, any slowdown in USA economy, worsening of European Union debt crisis situation and a imminent Chinese slowdown can change the trajectory of the Dow jone index.
Fundamental news flow and moves which change the technical set up of the chart. The index also need to cross 13112 to give final indication for upmove as explained above. While the 10510 support must not be breache. If Dow jones 10510 levels then it can make more correction.

Dow Jones is the major stock market benchmark of USA like we have Sensex in India.
Here, we have presented a historic view with analysis and some of comments as it is not possible to include all technical analysis and comments as it will make the article bigger and complicated to understand.
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