US DJI - Down trend forming

The DJI struggled and was unable to get out of the major down trend after it failed to test the 13,200 points resistance level since last month. The DJI only managed to climb as high as 13,136.69 points before settling at 12,646.22 points. It broke the immediate support level instead at 12,800 points and this means that the up trend has been reversed.

The confirmed double top chart formation on the daily chart confirms the reversal. However, the down trend is still at the middle formation stage. This formation causes other markets especially the Asian markets to speculate a down trend. Most Asian indices declined lower than the DJI. The down trend can only be formed if the DJI fails to go above 13,132 points. In the mean time, the DJI is expected to fall further and may test the 12,100 points support level. Resistance level remains at 13,200 points.

Article by Benny Lee