Beginning of downtrend in Dow Jones

Last few days in Dow Jones industrials were not good for long position.Its technical chart shows beginning of downtrend. Let us analyze the technical chart of Dow Jones with our indicator Ichimoku

 

.

 

On 23-May-2011, price closes below Kijun Sen. That was the first signal of weakness and suggestion to book profit in long positions. On 25-May-2011, Tenkan Sen and Kijun Sen also crosses; giving again bearish signal. At the time, Dow Jones was trading @12394.



 The weakness continued further and then few days back, not only the price closes below kumo but Chikou Span (CS) also closes below kumo. That gave bearish kumo breakout.

One can now take short position with stop loss. Exit when price closes above kujun-sen (KS).

Rate this post






+Admin

Leave a Comment

Your email address will not be published. Required fields are marked *