Dow Jones Value Forecast:Dow Jones Value Outlook: Election Rally Sends DJIA to Overbought TerritoryThe Dow Jones stands on the cu
Dow Jones Value Forecast:
Dow Jones Value Outlook: Election Rally Sends DJIA to Overbought Territory
The Dow Jones stands on the cusp of overbought territory after having fun with a exceptional rally this week. After struggling vital losses in late October, threat urge for food has come roaring again and bringing the Dow Jones with it. Nearing overbought territory and missing a clear-cut winner within the election, can threat urge for food persevere by these potential headwinds and proceed larger? Or will the Dow Jones, Nasdaq 100 and S&P 500 sluggish their ascent?
| Change in | Longs | Shorts | OI |
| Every day | -25% | 11% | -4% |
| Weekly | -50% | 69% | -3% |
To make sure, IG shopper sentiment knowledge reveals retail merchants have shifted aggressively to the quick aspect. Since we sometimes take a contrarian view to crowd sentiment, this might counsel the Dow has extra room to run. That being stated, there are ranges of resistance overhead that the index should cope with.
Dow Jones Value Chart: 4 – Hour Time Body (June 2020 – November 2020)
Nearest the present buying and selling worth stands the Fibonacci stage round 28,000. Exhibiting lackluster affect in Wednesday buying and selling, the world could serve solely as an intraday marker because it appears to lack advantage on a longer-term foundation. Nonetheless, it stands between worth and secondary and tertiary resistance ranges across the 28,455 and 28,760 marks respectively. 28,760 is derived from the trendline projection off the September and October peaks whereas 28,455 is the subsequent Fibonacci stage.
Nasdaq 100 Forecast: Tech Shares Soar Regardless of Election Uncertainty
Ought to threat urge for food recede, resulting in declines for the Dow Jones, preliminary help could reside across the 27,630 Fibonacci stage adopted by 27,265. Both means, a major pullback within the volatility index (VIX) may even see worth motion sluggish no matter route. Within the meantime, comply with @PeterHanksFX on Twitter for updates and evaluation.
–Written by Peter Hanks, Strategist for DailyFX.com
Contact and comply with Peter on Twitter @PeterHanksFX