Dow Jones Industrial Average 16th Feb 2016: Weekly technical chart
Momentum:
MACD: Negative
RSI: Bearish Trend
Stochastic: Buy
Daily Price Action Trend: Negative
Last relevant high: 16,511.0
Last relevant low: 15,450.5
Comment:
With the US Markets closed for Presidents Day on Monday we at TipTv thought a look at the weekly time frame would be useful for our avid readers, we cannot stress enough how important it is to look at different time frames when trading, it helps to ensure you remain the correct side of the general market trends.
From a technical point of view the weekly time frame remains bearish and this is one of main reasons when discussing the daily charts we are more likely to suggest waiting for opportunities to short the market then attempting to aggressively buy into bullish signals. We will remain in this negative weekly trend until either a higher high or higher low has been formed.
We do note that a positive pattern could be formed this week if: 16,202.0 is bettered without 15,503.0 being broken.
From the momentum indicators we have a bearish feel with two out of three being negative and we do have plenty of room for the RSI to move lower before you could argue that a significant floor has been formed. Clearly government intervention is always possible as the market gets spooked with talk of deflation and recession; clearly we need to remain nimble if and when new rounds of QE hit the market.
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