Dow Jones Members That Over 200-Day MA is at a Critical Level
Burc Oran
January 12, 2021
Daily news update image for financial markets showing key market trends and analysis
Dow Jones, Percentage of Stocks That Are Over 200-day MA
Dow Jones, Percentage of Stocks That Are Over 200-day MA

Since 2018, whenever over 200-day moving average member stocks percentage get near %97, Dow Jones price got a correction and fell more than %7. The actual price is diverging to the upside from the 200-day MA as well. A mean-reversal move odds are increasing.

Dow Jones Daily Chart, 100-day MA
Dow Jones Daily Chart, 100-day MA

Starting from November, Dow Jones is moving within a bullish trend channel. The price is currently testing the upper trend line. Unless we see daily closes above 31145, the lower line of the channel, 30025 can be targeted. And, if the price breaks that line too, the 29000 level which is supported by the 100-day moving average can be the next target. 29000 level is also nearly 7 percent lower from the current top.

Stay informed with market news by subscribing to our reading list.

FTD Articles is a website prepared by FTD Limited's research team. FTD Limited is an online brokerage company offering products of Forex, Spot Metals and CFDs.
The ideas and the information shown here have no responsibility of any of the trading decisions made by the investors or the visitors of this site. Therefore, under no circumstances will FTD Limited nor FTD Articles be held responsible or liable in any way for any claims, damages, losses, costs or liabilities resulting or arising directly or indirectly from the use of website content. We recommend that you seek advice if you have not involved with trading before in order to prevent potential risks that may arise.