Post touching its highs, DJIA witnessed its biggest point drop in the history as it plunged by 1600 points but was still down by 1175 points by the end of the day which caused mayhem in the market. It lost over 5% from its recent lifetime high and wiped off most the gains for the year. This was blamed on the rising concerns around higher bond yields and lingering doubts about increase in inflation if the economy exhibits strong growth. We mentioned in our previous report “The move above the trendline can be a throw over which can culminate with a dramatic reversal catching everyone off guard.”
DJIA Weekly chart – Anticipated in December 2017 in monthly research report:
DJIA Weekly chart – Happened
In November 2017 issue we mentioned the following for DJIA – we have shown expanding pattern and there is possibility that the entire rise is not complex correction but some sort of Expanding triangle pattern. The move above the trendline can be a throwover which can culiminate with a dramatic reversal catching everyone offguard. However, we would refrain from catching a top in this index unless there is a strong confirmation by price re-entering within the channel which is only on break below 23000 levels.
Happened: Dow Jones Industrial Average rallied in the entire month of January 2018. It had been soaring with and touched lifetime highs of 26616 levels.
In the previous update on DJIA we also mentioned the following – we will refrain from giving upside targets for this “BULL” but whenever the buying gets thin and exhausted there will be a culmination resulting into a chaotic crash.
The above clearly shows that by understanding the pattern you can simply make out how the prices will react. We can see a historical fall in single day in DJIA. Does it mean it has formed a top? Not necessarily. One leg on upside is pending which will complete the ongoing Diametric pattern that we mentioned in our latest monthly research report.
The latest monthly research report is now published that explains Neo wave, Elliott wave, Hurst’s Time cycle pattern of Nifty, Stock pick for the month, DJIA dramatic reversal, Forex market – USDINR, GBPINR, EURINR, Crypto currency – XRPUSD, Mutual Funds. Subscribe Now
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