We just closed the books on another month so it's time to pull back from the day-to-day and look at the longer timeframes. The Dow Jones Industrial Average (DJIA, DIA) gets a lot of attention from the media but generally not much from the trading world. Maybe in this time of reflection it makes sense to take a peek at what they are all so fired up about, but with a traders twist.
DJIA, Monthly, Andrew’s Pitchfork
The long-term monthly chart of the Dow above shows the major rise from 2002 through 2007 and the fall into the 2009 lows. Using these endpoints a bullish Andrew’s Pitchfork emerges. The red Median Line is just below the current price at 12813, and so a pullback to that level is not out of the question as it attracts price lower, but the clear trend is higher. If you shift to the chart below of the Gann Square and Fan Lines you can see that after the extreme event of the 2009 low it has been moving back toward the 1/1 line tightening the cone along the way with support with touches at the 2/1 line.
DJIA, Monthly, Gann
The 1/1 level above at 14312 in November puts a bound on the upper side. 12813 to 14312, is quite a large range. But definitely bullish in the long term.
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