The last few weeks on the American markets have been very difficult given the alternation of bullish and bearish signals. The important thing in these cases is to have clear reference points, ie reversal points, which allow orientation even when you are in the middle of the storm.
If we were wondering last week if US equity markets were warming their engines on Wall Street to start up again, this week we are in a situation where the September close could trigger panic on US stock markets.
The monthly close of the Dow Jones, in fact, was lower than the very important support in the 33,950 area (I price target) that for months we have been indicating as the watershed between the downside and the upside.
Should we, therefore, fasten our seat belts and expect a tumble in the American stock markets?
As anyone who is a regular reader of the reports of the Proiezionidiborsa Research Department knows by now, to be sure of a signal it is always better to wait for confirmation in the next bar. Especially as in this case where the sell signal of the Swing Indicator has not been validated by the filter we apply to reduce the number of false signals.
To understand the long-term future of the Dow Jones, therefore, the closing of October will be decisive.
Before analyzing in detail the daily and weekly time frames, we remind you that the forecast fractal, obtained by combining 150 years of history, foresees a decline for the next few weeks. Even if in the short term we could see a slight upside.
The close of September could trigger panic on the American stock markets: the indications of the graphical analysis
The Dow Jones (DJ30) closed the session on 1 October at 34,326.46, up by 1.43% compared to the previous session. The week-over-week change was up 0.62%.
Daily time frame
The first four sessions of the week were all down. However, on Friday we saw a kidney blow that almost completely canceled out the weekly decline. The prices, therefore, came into contact with the resistance in the 34.340 area, the break of which at the end of the day would trigger a short-term bullish projection. In this case, the Dow Jones could go up to the 38,000 area.
A confirmation of the downside would be with a daily close below 33,890. In this case, the prices would be directed towards the objectives indicated in the figure.
Weekly time frame
On this time frame, uncertainty continues to reign supreme. The prices, in fact, are dancing in the area of 34,580 suspended between the rise and fall.
A weekly close above 34,940 would trigger the rise towards the targets indicated in the figure by the dotted line. Conversely, the breakdown of the support in the 33,840 area would push the prices towards the objectives indicated in the figure by the red line.
Wait for confirmation of the signal before taking a position.
Time frame mensile
(We remind you to carefully read the warnings regarding this article, which can be consulted WHO”)