DJIA - Bottoming out or preparing for fresh sell off??? It's at crucial week.

 


Hello everyone, 

It sounds like you're analyzing the Dow Jones Industrial Average (DJIA) from a technical standpoint. Here's a brief breakdown of what you're pointing out:

Key Points:

  1. Follow-Up Week:
    This typically suggests a continuation or confirmation of a move—often in the context of a potential rally after a bottom. Traders watch for increased volume and price movement to validate strength.

  2. Resistance Ahead:

    • 200-Day Moving Average (DMA):
      A major long-term indicator. When the price approaches the 200 DMA from below, it often acts as a strong resistance level. Many traders and algorithms watch this closely.

    • Bottom of Double Top Formation:
      If the DJIA previously formed a double top, the lower horizontal line (support turned resistance) becomes a key level to watch. A failure to break above it may lead to a bearish turn.

I’m Praveen Kumar, a seasoned Technical Analyst and stock market trader with over 25 years of experience in the Indian equity and derivatives markets. My passion for numbers and patterns led me to a dual career as a Mathematics Teacher and market technician. I specialize in Technical Analysis, with deep expertise in Elliott Wave Theory, derivatives strategies, and market forecasting. Over the years, my analysis and market views have been featured on NDTV Profit as a financial guest, along with published articles on reputed financial web portals, sharing insights on Nifty 50, Bank Nifty, and stock market trends. As a trader and analyst, I focus on interpreting price action, chart patterns, wave counts, and technical indicators to deliver precise market levels and actionable trade ideas. My approach blends classical charting with modern analysis tools to help traders navigate market volatility. Through VieCapital, I aim to share daily market analysis, trading strategies, and educatio…
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