Nifty and Dow Jones Technical Analysis

Dow Jones:

Dow Jones is already in the bearish zone as per Dow theory and formation of lower tops and lower bottoms in daily charts. On 26^th August 2022 Dow Jones has already given the breakdown from Mountain and Hill pattern as detailed below:

As per the analysis, the target after breaking down from Mountain and Hill pattern was around 31620-31640. This target was achieved on 31^st August 2022 as depicted in the picture below after which a little pullback was expected.

Now, Dow Jones is already bearish and any hope of its upward movement will be only after its closing above 32600. If we see Dow in today’s scenario, its still in bearish zone and took resistance from the downtrend line and gap down on 13 Sept 2022 from the same point so if Dow closes below 31000 then we might see more correction in the same.

So, as per the technical analysis Dow Jones is bearish and Short positions can be initiated below the 31000 levels and long positions can be initiated above 32600 or if Dow moves towards the downtrend line again.

Nifty:

If we compare Nifty with Dow Jones on the same dates when there was breakdown, we can see the Nifty is still in uptrend and took the support of trendline after opening gap down as depicted in the picture below. This was a good sign.

When Dow Jones was still down, Nifty again took the support of trend line while forming lower tops as depicted in the picture below:

This is the time when we should wait for the Nifty to give the clear indication for either the upside movement of breakdown from the trendline. But the next day previous top was broken and hence, Nifty again proved to be bullish as per the chart analysis.

Now again, after breaching the previous top, it should become the support for future and when today Nifty opened gap down, it took support exactly at the same point as depicted in the picture below:

As per current analysis, Nifty is still above the trendline and looks bullish. If 18150 levels are broken then we might see the targets of 18300 – 18400.

Overall, Nifty is bullish and Dow Jones is bearish and we might expect Nifty to move up from here and coming days might bring more correction in Dow Jones if 31000 level is broken on closing basis.

Above Information is for educational purpose only. No trades solicited.