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11.03.2022 06:19 PM
Trading signals for Dow Jones-30 (#INDU) on March 11-14, 2022: sell below 33,593 (3/8 Murray)

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One of the reasons behind the improvement in stock markets was the apparent rapprochement between the parties, the governments of Ukraine and Russia.

The Ukrainian government seems to be ready to make concessions regarding the territorial integrity of its country and its neutrality, which would mean abandoning the objective of joining NATO.

For its part, the Russian government was willing to dialogue as long as it achieves the goal of Ukraine's neutrality.

These developments were the fire that fueled risk appetite driving the Dow Jones to break out of the downtrend channel that had formed since March 2.

Currently, the index is trading below the 3/8 Murray, above the 21 SMA, and above the downtrend channel. A pullback is expected in the next few hours towards the area 33,047. This will give us the opportunity to buy the Dow Jones again with targets at the 200 EMA located at 34,113.

The dominant trend remains downward as long as the index trades below the 200 EMA at 34,113 and below the 4/8 Murray at 34,375. A trade and a daily close above 34,375 (4/8 Murray) could mean the change in trend and the price could reach the level of 35,957 (6/8 Murray). This will mean the start of a new bullish move.

Conversely, a daily close below the 21 SMA at 33,047 could resume the move down towards 2/8 Murray at 32,812 and eventually the price could drop to the low of March 8 at 32,337.

Our trading plan is to sell below 33,593 (3/8) with targets at 33,050 (21 SMA) and wait for a technical bounce at that same level to buy with targets at 34,113 (200 EMA).

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