The Dow Jones Industrial Average (DJIA) recently broke through resistances that had held the index in a sideways zone for nearly 6 months, from May 2013 to November 2013. As predicted, on the break of resistance at 15655, the index has renewed its previous trend & is now at 16500.
The old support & resistance points/zones are marked in the chart above, you can click on the following link to read the older post on the DJIA - http://www.marketlok.com/4/post/2013/10/djia-index-the-government-shutdown-blues.html
Lookin at the present, as mentioned earlier the DJIA has renewed it's previous up-trend & has already moved up over 900 points. The index is holding support levels very well as of now & has shown very large momentum. This is expected as the 6 month sideways zone on the index has acted as a propulsion zone.
Supports for the index are at 16196, 15704, 15530 & 15396. The support levels at 16916 & 15704 are strong, some price action around these price pints will not do any damage to the index in the medium to long term. The support levels at 15530 & 15396 form a support zone, which is very strong & hence important. Any breach of this zone will end the prospects of the up-move continuing & might push the index into a sideways zone or even into a down trend, which looks very unlikely as of now. Resistance will be seen at 16690, 16958.5 & 17300. These are also the next immediate targets for the index.
The index has surpassed all performance expectations so far. The sideways zone from May to November 2013 has only made the trend stronger. The DJIA is still very bullish & will remain bullish as long as it holds important support levels, which are - 15530-15386 as of now.