The probability that a retracement will occur on the Wall Street stock markets increases more and more, so we can summarize the third consecutive week during which the bulls tried to break up the resistance in the 34.860 area (II price target) without, however, succeed.
If we extend our analysis to what happened from May onwards we see that the register is always the same. Quotations in contact with the resistance in the 34,860 area that cannot overcome it. We also note how the weekly excursions have always been very limited. Only once did we see a week closed down by more than 3% immediately followed by another week with a 3% rise. Virtually high volatility without, however, turning the current trend around.
We are therefore always in the same situation we were in a few weeks ago when we were writing, The stock markets on Wall Street are always set to rise but very important obstacles remain to be overcome.
The likelihood of a retracement on the stock markets of Wall Street increases more and more: the indications of the graphical analysis
The Dow Jones (click here for quotes) closed the session on July 16 at 34,687.86, down by 0.86% compared to the previous session. The week-over-week change was down by 0.52%.
Weekly time frame
The situation on the Dow Jones is very complicated. In fact, since the beginning of April, prices have been frozen within the 33,600 – 34,860 trading range. Although the Swing Indicator has given a long series of bullish signals, the prices fail to take off, always leaving the future of the index in the balance. Only an external weekly close at one of these two levels could give direction to the prices. Therefore, continue to carefully monitor the indicated levels.
Time frame mensile
For the long term, the view is firmly bullish. Monitor only the support in area 33,950 at the monthly close.
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(We remind you to carefully read the warnings regarding this article, which can be consulted who”)
