Review and dynamics
After high volatility in the first two days after the election of the new US President, the rise in the US stock market continues. Within a week the index DJIA has grown by 5.4%, which is the highest rise since December 2011. After the opening of this trading week and today's trading session the index DJIA continues to rise, reaching new highs.
The index DJIA is traded above the recent highs at the level of 18620 recorded in this summer. After breaking out the upper limit of the descending channel on the daily chart at the level of 18860,
above the key support levels of 17920 (Fibonacci 23.6% to the rise from the level of 15660 after the recovery this February, which followed the decline since the beginning of the year), 17990 (ЕМА200 on the daily chart) and 18100 (ЕМА144 on the daily chart).
On the 4 hour, daily, weekly and monthly charts the indicators OsMA and Stochastic are in the positive area, indicating strong upward momentum.
American economic growth is steady, which is proved by the positive US macro economic statistics, which triggers bullish trend in the US stock market.
Despite high possibility of the rate hike in December, the rise in the U.S. stock market can continue or at least maintains the achieved highs.
There are no any indications of the trend reversal or the decline in the index DJIA.
In case of the alternative scenario the index DJIA can go down below the level of 18620 and continue to decline in the new descending channel on the daily chart. However, downtrend can develop only in case of breakdown and consolidation below the level of 17920.
Consolidation below the level of 17490 (Fibonacci 38.2, ЕМА200 on the weekly chart) can will trigger further decline in the index DJIA.
As long as the index DJIA remains above support level of 18620, uptrend will continue.
Support levels: 18860, 18620, 18375, 18280, 18100, 17990 and 17920.
Resistance level: 18970.
Buy Stop: 18975. Stop-Loss: 18860. Take-Profit: 18990 and 19100.
Sell Stop: 18855. Stop-Loss: 18900. Take-Profit: 18620, 18375, 18280, 18100, 17990 and 17920.
Indicators give buy signals
Breakout of the resistance level of 18860