The Dow Jones Industrial Average is the oldest stock index in the world. It brings together, in an «equal-weighted way», the thirty most important listed stocks on North American markets. The index showed a bullish dynamic, supported by ...
Day By Day – Indipendent Research
the 100-day moving average. This reversed during the summer of 2011, following several unsuccessful tests of the major resistance at 12,750 points, giving way to a real crash! This brutal decline has stopped at the support at 10,710 points, close to the 38% retracement threshold of the bullish movement carried out between 2009 and 2011, and the prices have then entered into a very volatile consolidation phase .The bearishmovement is no longer valid, but we do not expect new peaks in the coming weeks: we are neutral in the medium-term.
| Close price | 10913.38 |
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| 2 months Opinion | NEUTRAL |
| 2 weeks Opinion | POSITIVE |
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| Resistances | 11880 / 12290 pts |
| Supports | 10710 / 10450 pts |
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Anticipation :
We are therefore positive in the short-term, and envision a rallying towards the resistance at 11,880 points. We set the invalidation threshold for this positive scenario slightly below the support at 10,710 points.
| Traker’s Name | Leverage | Expense ratio |
| CS ETF (IE) on Dow Jones Industrial Average | x1 | 0,33% |
| Lyxor ETF Dow Jones Industrial Average | x1 | 0,50% |
| SPDR Dow Jones Industrial Average ETF Trust | x1 | 0,18% |
Follow-up Analysys: Our DBD Tracker dated 26/09/2011 recommended the purchase of the ISE National 30 index. Since then, prices have reached our target at 72 980 points: a performance of 8.8%.
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Source: ETFWorld – Day By Day – Indipendent Research
