Technical Analysis DJI : 2020-09-23

Recommendation for Dow Jones Index: Sell

Sell Stop : Below 26709.3

Stop Loss : Above 28358.9

Indicator Value Signal
RSI Sell
Donchian Channel Neutral
MA(200) Buy
Fractals Sell
Parabolic SAR Sell

Chart Analysis

On the daily timeframe the DJI: Daily is retreating toward the 200-day moving average MA(200) which has leveled off. We believe the bearish momentum will continue after the price breaches below the lower boundary of Donchian channel at 26709.3. A level below this can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 28358.9. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (28358.9) without reaching the order (26709.3), we recommend cancelling the order: the market has undergone internal changes which were not taken into account

Fundamental Analysis

US economic activity slows. Will the DJI retreat continue?