Dow Jones Breaks Out!
The Dow Jones is leading the way for the three US indices by being the first to
recently break and close above the daily 200 simple moving average.
There was a previous break and close above the 200 simple moving average back
in August this year but this proved to be a fake breakout. Only to see price decline by 16%.
This recent move up has been more impulsive than the previous move. The buyers look more
in control, but we need further confirmation before we begin to take long positions again.
We ideally want to see a pattern of higher highs, and higher lows, as this will indicate
a change in behaviour for this asset.
If the S&P and the Nasdaq follow suit and show signs of bullishness, this will further
confirm strength in the market, and a long-term bullish trend will likely unfold.
If you like enjoyed this post, make sure to like, and follow for more quality content!
If you have any questions or comments, comment below. We reply to every comment!
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
recently break and close above the daily 200 simple moving average.
There was a previous break and close above the 200 simple moving average back
in August this year but this proved to be a fake breakout. Only to see price decline by 16%.
This recent move up has been more impulsive than the previous move. The buyers look more
in control, but we need further confirmation before we begin to take long positions again.
We ideally want to see a pattern of higher highs, and higher lows, as this will indicate
a change in behaviour for this asset.
If the S&P and the Nasdaq follow suit and show signs of bullishness, this will further
confirm strength in the market, and a long-term bullish trend will likely unfold.
If you like enjoyed this post, make sure to like, and follow for more quality content!
If you have any questions or comments, comment below. We reply to every comment!
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
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