Edited by Vani Rao
On 3 December 2013, the Dow Jones Industrial Average ended lower at 16,008.77, down 0.48% from its previous close. However, it was still above the 16,000 level, which is working as a psychological support level for the Index. Post eight straight weeks of higher closing, the Dow’s recent pullback mostly reflects the lack of news to fuel its growth story further at this moment. Though this pullback will not be able to hold the Index for long, the Dow’s long-term story remains intact and we are likely to see more of an upside in the near future.
Technically, the Dow Jones Industrial Average is trading above 20-day, 50-day, and 200-day daily simple moving average and making a strong bullish trendgoing forward.However,the 5-day and 10-day daily moving averages suggest a Sell signal in the short term. RSI too indicates a Sell signal at the current levels.Trend indicators like the MACD is well below the Signal line, while negative indicators suggests bearish divergence from its signal line and the Index is likely to fall further down from this level. In the short term, we believe that the Dow is likely to see some pullback;however, every pullback can be used as a further buying opportunity.