I'm not sure if it will go up that high. But I do believe it will go up in the next few days. I see a descending triangle with indicators pointing towards an upward trend.
Phoenix085
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@Princessgirl, Can you elaborate?? Better post your ideas so that i can better understand...
Princessgirl
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@Phoenix085, Ok. I am not 100% sure on everything and I am basing my ideas on a lot of theories.
In theory, the stocks could go higher because the governments are printing so much money that the stock prices will get inflated in price. But at some point, the prices will start to go down to their real worth. (fundamental theory)
But since I believe we are in a bear market since the end of February. I think the general direction of the DOW and most stocks are downward with some retractions/retracements upward.
Whenever, there is a descending or ascending triangle formation on the chart, that indicates that the market will either go straight up OR straight down from the tip of the triangle. So anywhere from July 9th to July 13th it could start to move up or down. (technical theory)
There is convergence on the MacD, which also means there is possibly going to be a stronger move up or down. (Found this out thru YouTube)
I believe it will go down as opposed to up as there are some indicators indicating a downward movement. There is a crossover on the DMI indicator. The -DI is crossing the +DI which indicates a downward movement. However, the ADX is quite low hovering around a 12 which means that the strength in the move will not be strong. However, the ADX can move quite quickly in a short period of time.
I use the CCI instead of the RSI because I find there are better buy signals with it. (YouTube, as well) The CCI is not in an overbought position yet, but I believe we have at least 9 more days until we will see a significant move up or down so I suspect the CCI will be in an overbought position by then.
The Stoch RSI and the MacD are showing an upward trend but I believe that will be short lived due to the convergence shown on the MacD. The Stoch RSI and the MacD should present a downward move within the next 9 to 13days.
I hope this explains more. But I am still learning, so I could be wrong.
Princessgirl
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Right now, I see a lot of the indicators saying a lot of conflicting things; one is saying it is going up and another is saying it is going down. So that is why I think the market will only move slightly up or sideways because not all the indicators are saying the same thing. But added to the convergence, the DMI, the descending triangle and the fact we still have about 9 days until the tip of the triangle, that would give all the indicators enough time to point in the same direction. And based on my theory that the DOW was just having an upward retracement, it should go down.