S&P have downgraded 9 Euro zone countries rating on last Friday. Dow Jones Industrial was down 149 point but it recovered and rallied 100 point. In this article, I'll use technical indicator to analyse DJI and Nasdaq for Jan 17th-21st. So far I have been focusing on RSI and MACD technical indicator. Its time to learn something new.
For the analysis I have used Acceleration Bands which indicates the breakout point, Bollinger bands, William %R - which indicates whether the market is overbought or oversold.
Jan 17th -21st Outlook:
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| Dow Jones Industrial Avg Jan 9th -13th Performance |
From the above chart, acceleration band suggest it has broken the envelope, and if the market open high on Tuesday, its likely to fall to come back in the envelope and likely to remain flat. William %R suggest Dow jones is overbought as well, so we should expect decline in Dow jones by 50 - 100 point atleast.
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| Nasdaq Composite 1 year Performance |
Here is another analysis on Nasdaq composite Index for 1 year. Acceleration band, Williams %R and Bollinger Bands is showing, the market is overbought and we should see downfall in Nasdaq as well.
Because of shortage of time, I couldn't explain in detail, but you can find more info about this technical indicator.
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