Edited by Vani Rao
On 12 December 2013, the Dow Jones Industrial Average ended lower at 15,739.43, down 0.66% from its previous close. In today’s trade, the Dow took support of the 15,700 level and managed to close above 15,700. However, the Dow may fall all the way to 15,500 before seeing the next sense of buying. At this point, we advice investors to remain on the sideline and wait for more catalysts to make or break the market. We’ll wait to see the 15,500 level before we again consider buying the Index. WSA still believes that 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 its 50-day and 200-day simple daily moving averages, but below its 20-day moving average, indicating a bearish trend in the near short term. The candlesticks pattern indicates Three Black Crows, which forms a long black candlestick, and further suggests a bearish trend going forward. Strength indicators like the RSI indicates a Buy, whereas Willam %R suggests a Sell at the current level. Trend indicators like the MACD is well below the Signal line, negative indicators suggest a bearish divergence from the Signal line. Moreover,the Index is likely to fall further from this level in the short term, however, in the long run,the Index could witness some strong strong upward momentum.