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Is the Dow Jones Ripe for a Correction?

By Stephen LokeStock MarketsNov 30, 2023 03:12AM ET
www.investing.com/analysis/is-the-dow-jones-ripe-for-a-correction-200644010
Is the Dow Jones Ripe for a Correction?
By Stephen Loke   |  Nov 30, 2023 03:12AM ET
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After rising so fast in a short period of time, is it time for a correction in the Dow? It should not be a surpise because the markets do not go up in a straight line. It corrects and then moves higher in the long run.

The Dow Jones Industrial Average is now sitting at a resistance area. Let's take a look at the charts and see what we can learn from it.


daily chart of Dow Jones Industrial Average
daily chart of Dow Jones Industrial Average



The chart above shows the daily chart of the Dow Jones Industrial Average. You can see how it has traded back to the former highs. This will be a resistance area and that is why it is finding it hard to move higher.

I won't be surprised if it needs some time to correct or trade sideways. In fact a sideways correction is good because it allows the index to rest before moving up higher.

What I am worried about is the MACD is about to issue a sell signal. You can see how in the past the Dow has corrected when the MACD lines give a sell signal. So this is something for us to keep in mind.

60 min chart of Dow Jones Industrial Average
60 min chart of Dow Jones Industrial Average



To gauge the short term trend, I always like to take a look at the 60 min chart. The above shows the 60 min chart of the Dow.

One good thing is there are layers of 60 min support areas below which I have highlighted in green. But do be careful if the Dow drops below the 60 min 50 MA. What you don't want to see is for Dow to drop below the support areas.

Hope this analysis has helped you. Follow me for more analysis like this.

Is the Dow Jones Ripe for a Correction?
 

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Is the Dow Jones Ripe for a Correction?

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Comments (4)
As Ws
As Ws Dec 02, 2023 8:10AM ET
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Sherali Ababakirov
Sherali Ababakirov Dec 02, 2023 7:48AM ET
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yordam berasizmi
Sherali Ababakirov
Sherali Ababakirov Dec 02, 2023 7:45AM ET
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qanday qilib pul topsa boʻladi
Okoth Alex
Okoth Alex Nov 30, 2023 10:28PM ET
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will US 30 drop soon sir
 
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