The Dow Jones week can be divided into two distinct parts. The first three sessions led to a decline of over 3%. The last two, however, were those of the rescue. In fact, during the session on Thursday, after a decline that had led to a weekly loss of more than 5%, the prices saw an exceptional recovery with a negligible loss compared to the previous session. The close on Friday, on the other hand, with an increase of about 1%, could have marked the beginning of the recovery.
However, the decline in US equity markets continues with a longevity not seen since 2001. For the seventh consecutive week, the close was lower than the previous week. Thus updating the negative record we talked about last week. We note that when we talk about a prolonged discount we mean the number of weeks with the characteristics just specified. In terms of the depth of the downside, however, we are still within the norm.
Given this apparent discrepancy between the movement that took place in the last sessions of the week and the weekly trend, it is not yet certain that the decline will be averted.
Before addressing the discussion of possible future scenarios, let’s take stock of the comparison between the forecast fractal of ProiezionidiBorsa and the trend of the Dow Jones prices.
As can be seen from the graph below, the decline should continue in the coming weeks and will continue for the next few months. It will be interesting to see what happens in the coming weeks.
The decline on the American stock markets continues with a longevity that has not been seen since 2001: the indications of the graphical analysis
The Dow Jones (DJ30) closed the session on May 13 at 32,196.66, up by 1.47% compared to the previous session. The week-over-week change was down 2.14%.
Daily time frame
The last few sessions of the week, although to the upside, did not change the current bearish scenario.
The resilience of the support in area 31.075 (I price target) could favor a resumption of the rise which would turn into a reversal in the event of a weekly close above 32.955.
Otherwise, the decline could continue towards the objectives indicated in the figure.
Weekly time frame
For the seventh consecutive week the Dow Jones closed lower.
At this point, therefore, the prices could move towards the next target in the 30,810 area. The maximum bearish extension, on the other hand, could go to the 21.452 area.
A possible immediate restart to the upside could push the prices of the Dow Jones towards the 40,000 area.
The Milan stock exchange could be ready for a bullish turn thanks to the indication of these signals from the Ftse Mib