Stock Market Forecast 2020 Trend Analysis

By: Nadeem_Walayat

Long-term Trend Analysis

The Dow finally breached resistance along a series of sub 28k highs of the past 2 years that propelled the Dow towards 29k.

This analysis is part 3 of a series of 6 that concludes in an overall stock market trend forecast into the end of 2020.

1 Stock Market 2019 Review
2 QE4Ever
3 Trend Analysis
4 Elliott Wave analysis
5 US Presidential cycle
6 Stock Market Forecast 2020

However, the whole of this has first been made available to Patrons who support my work: Stock Market Trend Forecast Outlook for 2020

So for immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $3 per month. https://www.patreon.com/Nadeem_Walayat.

TREND CHANNELS - The Dow for most of 2019 has traded within a relatively tight bullish trading channel. With the most recent price action a reaction from the trend channel high. If the Dow continues to trade in this channel then that would put a cap on the Dow at about 33000 or +16%. Whilst the bottom end of the trading range by year end would resolve to about 29,100, or +2.2%. With the mid channel at about +7.6%

TREND ANALYSIS - The Dow has had a powerful run off the 26,000 low and now hit resistance at just below 29k which implies that the Dow should correct early 2020 down towards 27,500.

RESISTANCE : Resistance lies at new all time highs of 29,000, 30,000. 31,000 and beyond.

SUPPORT - is along a series of highs in the range of 26,500 to 27,500, so any decline should see a bounce from this range.

TRENDLINES - There are 2 rising trend lines off the major low of 21,700. With the Dow currently hugging the first to resistance that should give way for the Dow to target hugging the 2nd trend line which extends to about 31k by year end.

The overall trend picture is for limited upside during 2020, i.e. we are very unlikely to see a repeat of 2019's 24% gain.

MACD - MACD is overbought so implies continued upward price action is unlikely early January.

The rest of this has first been made available to Patrons who support my work: Stock Market Trend Forecast Outlook for 2020

So for immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $3 per month. https://www.patreon.com/Nadeem_Walayat.

Also immediate access to my just completed analysis that lists potential buying levels for the Top 15 AI Mega-trend stocks. Where the main thing is for investors to HAVE EXPOSURE to the AI sector! Because without any exposure your not riding the AI train and so unless you are prepared to immerse yourself in AI, i.e. trundle along to the many AI platforms out there such as by Google. Microsoft or Elon Musk's OpenAI then your only real way to capitalise on the AI mega-trend is buy OWNING AI stocks.

This graph further illustrates the magnitude of the change currently under way, where just 2 primary AI stocks, Apple and Microsoft are now worth more than the entire German stock market!

AI Stocks 2019 Review and Buying Levels Q1 2020

And my next analysis is already underway that I am to complete within the next few days.

• British Pound trend forecast

• Gold / Silver Updates
• UK Housing market series
• Stock Market Trend Forecast 2020
• Machine Intelligence Investing stocks sub sector analysis
• US Dollar Index

Your Analyst wishing ALL a Happy and Prosperous New Year!

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2019 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

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