With a disastrous second part of the week the graphic situation on the Dow Jones has become very critical. After a recovering start from the lows, everything on Wall Street came down from Wednesday onwards and the week ended with a heavy fall.
Once again the news coming from Ukraine influenced the performance of the stock exchanges. The problem now is that if he confirms the breakdown of supports for US equity markets next week, things will get very bad. We also remind you that a bearish scenario for the next 3/4 months is also favored by the historical series.
As can be seen from the forecast fractal below, in fact, the direction should still be down for the next few months. It will be interesting to see what happens in the coming weeks.
It would seem, therefore, that the week just ended was decisive as foreseen in the previous report. However, all is not yet lost for the bulls.
If next week he confirms the breakdown of the supports for the American stock markets, things will get very bad: the indications of the graphical analysis
The Dow Jones (DJ30) closed the session on 18 February at 34,079.18, down by 0.68% compared to the previous session. The week-over-week change was down by 1.90%.
Daily time frame
The current trend is bearish, but the bulls have not yet given up all hope. The possible recovery, in fact, passes through the holding of the support in area 34,024. In this case, the subsequent break to the upside of 34.372 would make the prices rise again towards the 40,000 area, the maximum extension of the current projection.
The bears, on the other hand, would definitely take over in the event of a daily close below 33.474. In this case the closest bearish target passes through the 32.022 area. The maximum bearish extension, on the other hand, is in the 24,417 area.
Weekly time frame
Very bad bearish signal with the weekly close below 34.394. Therefore, the doors were opened for a continuation of the descent up to the II price target in the 31,835 area. The maximum downward extension passes through area 29,277 (III price target).
Only the immediate recovery of area 34.394 would make it safe from further descents and could favor an immediate restart towards area 40.000.
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