The DJI is still navigating in a downtrend, however a recent (and quick) rebound brought the index back to the top of the range.
The next few days will decide whether the index falls back and continues in the same long term direction it started back on January 5th of this year.
There are 4 reasons to lean towards a reverse and the index falling back to its previous levels, below 30,000:
1. The index is nearing the top of the downward channel
2. The index is approaching the Fib level (78.6% circa 32,500)...
3. ... which is very close to the SMA200
4. The RSI index is entering the overbought level, in a similar pattern to the last move downward in mid-August
Should the DJI maintain around this level or break from below followed by a confirmation of the upward move, this could be the beginning of an uptrend in the mid term.
Long term wise, the downtrend is still strong and should prevail to any other move.
The next few days will decide whether the index falls back and continues in the same long term direction it started back on January 5th of this year.
There are 4 reasons to lean towards a reverse and the index falling back to its previous levels, below 30,000:
1. The index is nearing the top of the downward channel
2. The index is approaching the Fib level (78.6% circa 32,500)...
3. ... which is very close to the SMA200
4. The RSI index is entering the overbought level, in a similar pattern to the last move downward in mid-August
Should the DJI maintain around this level or break from below followed by a confirmation of the upward move, this could be the beginning of an uptrend in the mid term.
Long term wise, the downtrend is still strong and should prevail to any other move.
A new analysis will follow.