DJI Archives - FaithMight

September 8, 2022September 8, 2022

Dow Jones To Fall To A New Low

The Dow Jones has enjoyed a bullish run since the first quarter of 2020. The price was as low as $21,600 in March 2020. The bulls have been able to move price to an all-time high at the beginning of this year. The current all-time high is at $36,950 which was reached on the 5th of January 2022. The bears have been more effective this year as the year’s low is at $26,630. In mid-June, after the year low, the bulls resumed activities as a bounce occurred to reach $34,200 in August 2022.

After the 2022 second quarter high was reached at $34,200, the $DJI bears are back in action as stocks generally have fallen. The Dow Jones Index is not left out as price has fallen to $31,400. On the daily chart, RSI has shown that price is overbought, which resulted to the recent price dip. There could be continuous bearish turn in the next few weeks, as the 2022 support at $26,630 might be broken to the downside. With the recent fall of Dow Jones, price has fallen to the lower region of the Bollinger bands.

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April 28, 2022April 28, 2022

Dow Jones Falls Below $34,000 Psychological Level

Dow Jones experienced a comeback rally after the global lockdown of 2020 was eased. As of January 2020, the price of Dow Jones was at $21,618. Price was able to reach a new all-time high on January 5, 2022, at $36,991 which was close to the $37,000 psychological level. Ever since this year’s high was reached in January, Dow Jones bears have been aggressively active. Attempts by the bulls to push the price higher have been overpowered by the bears.

This year’s support currently stands at $32,296 which is over $4,500 lower than the all-time high. In March 2022, the price rallied to $35,368 which was March’s high. After March’s high, the bulls couldn’t push the price further upward as the bears seized back the momentum and caused the price to dip to $33,103. However, the price has risen a bit and is currently at $33,301.

RSI on two different occasions has shown that the price has been oversold on the daily timeframe. Despite these indications, the bulls have failed to push the price above $36,000. However, our analysts forecast that the bulls in a couple of weeks might manage to push the price to $35,000 and even beyond.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get stock indices in your portfolio? Schedule a meeting with us here.

January 5, 2022January 6, 2022

S&P 500 And Dow Jones Reach A New All-Time High

In our November article on S&P 500, the price had a correction as our analysts forecasted that $SPX could reach a new all-time high at $4800. The $4800 forecasted price was surpassed as the most recent all-time high is at $4824.53. Many stocks in the SPX appreciated around this time. SPX has been able to make 1X since the pandemic lowest price at $2210. The current price of SPX is $4793.53 after the price closed yesterday lower than the all-time high at $4824.53.

The new variant of the coronavirus named ‘IHU’ detected in France might likely pose a threat to the index, which might lead to a price fall. A sell-off might occur which could make the price of SPX fall to $4384.23. Despite the new all-time highs in the past months, SPX on the RSI has shown that price has been overbought multiple times since April 2021.

Dow Jones on the other hand made almost 1X the pandemic low at $18366. The Dow Jones recorded a new all-time high yesterday, being the second trading day of the year. There is no indication of a possible reversal. Early in December, our analysts forecasted the Dow Jones to reach a new all-time high. The new all-time was reached yesterday at $37,000. A correction might take place.

As SPX had a price fall on the second trading day of the year, Dow Jones extended its rally to a new all-time high at $37,000. The only threat to the continuous rally of the $DJI could be the new variant ”IHU’, which health officials found it has 46 mutations. These mutations are more than the omicron. The price still maintains the upper region of the Bollinger bands. The $DJI might continue its rally for the next few days or weeks.

Some of these ideas are in our clients’ portfolios. To understand which ones can work for you or for help to invest for your own wealth, talk to our advisors at FM Capital Group. Would you like more information on Investment Advisory, Portfolio Services, and VC? Schedule a meeting with us here.

December 7, 2021December 12, 2021

Price Of Dow Jones Heads To A New All-Time High

During the sharp drop in the price of Dow Jones in 2020, which was majorly caused by the global lockdown, the price fell from $29,473 to $18,000. Since the ease of lockdown, the price has continued to rally as most of the months in 2021 had a new all-time high. There was a breakout of the previous all-time high at $29,473 towards the latter part of the year 2020. Since this breakout, the bulls have been relentless. The opening price of Dow Jones at the beginning of the year was $30,489. Price has been able to reach a new all-time high at $36,598. There was a major dip in November 2021 when the price from the all-time high at $36,598 to $34,000. Then a rally occurred which is a result of a gap up. The 4hr chart clearly shows the price is currently in the upper region of the Bollinger bands.

There are likely possibilities of price reaching a new all-time high above $36,598, which could lead to a breakout of the resistance level. Almost all losses last month have been recovered with December’s price reversal. The gap down from $35,800 to $34,800 in November 2021 has been covered up with this bullish run this month. RSI was able to show that the price had been overbought in the previous all-time high in November 2021. As the price dips in November before consolidating, RSI also shows that price has been oversold, which was an indication of a price reversal. On the daily chart, the candlesticks crossed to the lower region of the bands in November as the price fell. Yesterday’s candlestick closed in the upper region of the Bollinger bands. This move could push the price to the next psychological level at $37,000.

August 10, 2021August 10, 2021

Dow Jones Fails to Breakout of Resistance

Dow Jones, being the index of the 30 top-performing U.S. companies, has been in range in the past few months, with the all-time high at $35,260. In January 2021, the Dow Jones passed the psychological level at $30,000 for the first time.

IN January 2020, Price tried to reach $30,000 but the bears pushed the price lower. Since March 2020, Dow Jones has been on a bullish run from its then $20,000, that approximately 75%. Prices of many stocks in the US have reached new all-time highs after the pandemic. There have been rising cases of covid-19 across the world, and especially with the USA having an average of over 100,000 new cases per day.

If covid-19 cases cannot be controlled in the next few months despite vaccines being administered, stock prices might begin to fall across the world and lockdown might be re-imposed. The next major support of $DJI could be around $26,900 if the price falls. As the price of $DJI crosses $33,000, RSI indicated that the price has been overbought, though the bulls still pushed the price higher to reach $35,000. The last time RSI showed that price has been overbought, the price of $DJI was below $30,000 which resulted in about a 40% dip in price.

Price still maintained the higher part of the Bollinger bands, though, in June, there was an indication of a reversal in price, as the price fell to $33,100 from $34,900. Companies in Dow Jones with the highest losses in July were Verizon with 5.9%, Walt Disney 2.5%, and Merck 3.1%. If the price of $DJI fails to break the resistance level at $35,260, the price might fall and might be catastrophic for the investors.

May 14, 2021May 14, 2021

Dow Jones Might Plunge Further

After a major dip to $18,900 occurred in the price of Dow Jones in March 2020. Price retraced to the resistance level at $29,500 in the same month. $DJI broke the resistance level at $29,500 in November 2020. Since this breakout occurred, $DJI has consistently reached a new all-time high every month. The recent all time high occurred this week at $35,100. $DJI’s price at the beginning of this year was at $30,200. As at today, price of $DJI is at $34,000, which is about 11% gain in 2021.

After the all-time high at $35,100 was reached this week, two bearish candlesticks were formed in the next days. These two candlesticks were as a result of the inflation data that was released on Wednesday. the $DJI plunged 680 points. Investors might have been fearful, hence the reason for the selling. Both S&P 500 and NASDAQ also took a nosedive. Could this be sign of the beginning of a bearish trend?

When a major dip occurred in March 2020, RSI showed price has been overbought. RSI is currently showing that p rice has been overbought. This could lead to a major dip in price. If this dip occurs, it might make price reach the support level at $26,550. If In the next few weeks, price might just be consolidating around $34,000. If the inflation situation worsens, price might plunge further.