Review: The Dow mini closed at all-time high of 19060 overnight, spearheaded by optimism surrounding President-elect Donald Trump’s policies to reduce tax, higher spending on infrastructures and lesser regulation. To recap, the Dow mini had surged 775 pts or 4.2% since his victory and recorded a 9.9% gain YTD.
Technical outlook: The breach above the psychological 19,000 resistance-turned-support level is a boon to the underlying index, as the bulls are likely to maintain momentum in the near-term based on the latest neckline resistance breakout above the 18000 and 18624 levels.? The continued higher high bullish convergence is displayed by the bullish hourly MACD histogram while RSI is also supportive of the bullish outlook. From here, the Dow mini could look to advance towards 19100 (R1), 19200 (R2) and 19344 (R3), with a breakout objective at 19456 in the medium term.
On the flip side, we are also cautious over the sustainability of the recent rise of the index given its deeply overbought condition (showcased by daily RSI). Hence, we do not discount the possibilities of pullback moving forward, whereby key supports are now tied at 19000 (S1), 18932 (S2) and 18800 (S3)
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....