Dow Jones, Nikkei & Hang Seng Up-date 26/6/2022

 Feeling a little bad about my AWOL for 2 weeks, I have decided to add in another entry.

Fig1. Dow Jones, Nikkei and Hang Seng Weekly Chart

Let's start with Dow Jones. 

I estimated that Dow Jones would fall further in in my last update3 weeks ago, it came true. It went below the 144-week moving average support. Dow Jones is by far the worst performing of the 3 even though it recovered from the fall the week prior. 

Where is it heading next?

The recovery bar is stronger than the fall the week prior, it stopped and rested above the 144-week moving average. In addition, it bounced back from the 61.8% projection support level. 

The coming week will give a crucial indication of its direction. If it congests in a narrow range and stay within the body of this week's bar, the chance of further up-climb is high. 

If it climbs further before retreating in the coming week, or a full retreat, losing most of its gain, we will then see a continuation downward movement.

Personally, it is just my gut feel, Dow Jones is not ready to climb.

Let's move on to Nikkei.

I wrote in my last entry that there is a chance it might fail at 55-week moving average mark, it did, forming a shooting star and came right back down before recovering to some extent.

While its movement is similar to Dow Jones, the degree at which Nikkei erode is very different. It tested the previous low for 2 weeks, while managed to go lower, it retreated. Furthermore, it closed above the 144-week moving average as well as the 61.8% projection support level.

The situation with Nikkei, I would say, is not as bad as Dow Jones. This is also support by the MACD which is seen climb up-ward gradually. It is possible that it is reversing at this point of time, the bar of coming week will be a good indicator to me.

Last but not least, Hang Seng.

I mentioned in my last up-date that Hangg Seng will be climbing but it may still be a correction to 55-week moving average. 

True enough Hang Seng did not fall like the other 2 indices, instead, it went into a small correction phase and continued its climb this week, ending above the 21-weekly moving average. 

My present prediction remains the same, climb towards 55-week moving average, coincidentally this is also the 100% projection resistance level. It's degree of steepness will determine if it remains a correction of a trend reversal has happened.