Stock Market Dow Analysis
Stock-Markets / Stock Markets 2018 Aug 13, 2018 - 07:11 AM GMTBy: Austin_Galt
Latest Price – 25313
Previous analysis updated – price as traded as outlined in analysis produced in June.
Pattern – we can see price has rallied nicely in July and I expect some further upside ahead. This is all part of the consolidation that I believe is still in motion. There is a full moon on the 26th August so that is some potential timing for a high. If not, the new moon on the 9th September is another potential timing target. Given the human body is composed of around 60% water and the moon affects the tides, then it should not come as a surprise that the moon is related to the stock market as the chart is just a picture of human behaviour. Just ask any hospital surgeon who will confirm that a surge in patients always occurs on a full moon and that same type of euphoria that causes revellers to hurt themselves on a high can be said of stock market players.
Daily Chart
Bollinger Bands - price has come back to the lower band and I expect support to come in here and send price back up.
Fibonacci – price is back at the 50% angle which I expect to provide support. Ultimately, I am targeting price to turn back down around the 88.6% Fibonacci retracement level of 26243.
RSI – weak although has had a good run down. Perhaps time to turn back up??
Monthly Chart
Pattern – we can see this consolidation is really just a blip within a massive uptrend.
Bollinger Bands – I am looking for another test of support from the middle band should price turn back down as laid out.
PSAR – the dots are currently at 25907 and as outlined in previous analysis I expect price to crack this resistance before turning back down and then testing the dots on the downside which will then act as support.
Fibonacci – should price turn back down as expected then the 38.2% angle should provide support and see in the higher low.
RSI – nudging overbought territory and I expect this indicator to get more solidly into oversold territory before price turns back down.
Summing up - I believe price has a bit more upside left before turning back down and testing the April 2018 low of 23344.
By Austin Galt
Austin Galt has previously worked as a stockbroker and investment banker while studying technical analysis for over two decades. He is also the author of the book White Night: A Colombian Odyssey
Email - info@thevoodooanalyst.com
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