2016-09-30 14:44:48

Review and dynamics
The rise in price since the beginning of July, has topped in the middle of August. After reaching the record highs at the level of 18620, the index DJIA is declining. On the daily chart a new descending channel has been formed with the lower limit near the level of 17700. The index has rebounded yesterday from the resistance level of 18290 (ЕМА50 on the daily chart, ЕМА200, ЕМА144 on 4-hour chart).

Technical analysis
At the end of the trading week and month investors may prefer to close and take profit.

On 4-hour chart the indicators OsMA and Stochastic give signals for short positions; on the daily and weekly charts the indicators also recommend sell positions.

The nearest targets for the decline will be support levels of 18015 (ЕМА144 on the daily chart) and 17920 (Fibonacci 23.6% to the rise from the level of 15660 after the recovery in February from the sharp decline at the beginning of the year) and 17885 (ЕМА200 on the daily chart).

The index may decline in the descending channel on the daily chart to the support level of 17700.

Breakdown of the support levels of 17490 (Fibonacci 38.2% ЕМА144 and the lower line of the ascending channel on the weekly chart) and 17380 (ЕМА200 on the weekly chart) may turn the index DJIA to the uptrend. Breakdown of the 17150 level (Fibonacci 50.0% and ЕМА200, ЕМА144 on the monthly chart) will confirm a change to the trend.

However, the positive dynamics in the American indices continues. The index may again rise to the levels of the annual highs at the level of 18600 as long as the index DJIA remains above the level of 17885.

However, a moderate rise in the US interest rate may be insufficient for changing the bullish trend in the US stock market. The rise may be possible only after breakout of the resistance level of 18290.

Support levels: 18015, 17920, 17885, 17700, 17490, 17380 and 17150.
Resistance levels: 18290, 18405, 18600 and 18620.

Trading tips
Buy Stop: 18215. Stop-Loss: 18150. Take-Profit: 18290, 18405, 18600 and 18620.
Sell Stop: 18120. Stop-Loss: 18190. Take-Profit: 18015, 17920, 17885, 17700, 17490, 17380 and 17150.

In the ascending channel
In the ascending channel

Rebound from the level of 18290
Rebound from the level of 18290