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Bullish Trend for Dow Jones Industrial

 

Dow Jones Industrial recently started a new short-term rally. The positive outcome of the Greek elections (17th of June) and the expectations that soon Eurozone will provide a permanent and stable solution to the problems of the European Banking Industry, turned investors bullish again. Dow Jones Industrial Average (DJIA) closed at 12,824.39 (June, 20th 2012) and now it is trading far above its recent intraday low of 12,003.75 points (June, 4th 2012).  


TCI in Action: Implementing Trading Center Indicator on Dow Jones Industrial 

In the following table, you may observe TCI in action. The point (A) indicates the starting point of the current DJIA rally (June, 11th 2012). At point (A) Dow closed at 12,411.23, above the Average Price of 180 days (12,403 points). This has been a confirmation that a short-term rally is on the way.

 

We have indicated the point (B) where Dow industrial is expected to reach a Middle Rally Top. The point (B) corresponds to 8 working days after the June, 20th of 2012, that means the July, 2nd 2012.

We have indicated the point (C) where Dow industrial is expected to end this short-term rally. The point (C) corresponds to 18 working days after the June, 20th of 2012, that means the July, 17th 2012.



Dow Jones Industrial TCI chart June 2009-June 2012

Here is a Dow Jones Industrial TCI chart during the past 3 years (2009-2012). You may see that the rally was triggered at the TCI price of -10%.

 

TCI Calculations – Dow at 13,070.00 / 13,590.00

We expect that the rally will top at a TCI price of +10-14%. That means a 2%-6% above the current price levels. In points that is translated to +250 points / +770 points. Thus we are expecting Dow Jones Industrial to reach 13,070.00 points / 13,590.00 in the next 3 weeks.

 

◘ Giorgos Protonotarios

Trading Center (2012)

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