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The DOW JONES reaches 34,039 points as predicted by J.Vendrell in 2020 (Part 2)

Study by Jorge Vendrell that will be part of his next book entitled: "THE SHOCK WAVES AND THE MAPS OF THE TREASURE" Appointment required by copyright.

12/05/2021 20:07

"If as I foresee the resistance line 3 located at 29.638 points were to fall in the coming days, once the prices have been overcome, they will try to attack the resistance of the main channel located between 33.242 and 34.039" Jorge Vendrell 08.10.2020

Study by Jorge Vendrell that will be part of his next book entitled: "THE SHOCK WAVES AND THE MAPS OF THE TREASURE" Appointment required by copyright.

Those who have followed my recommendation to buy the Dow Jones at 26,660, and have sold 34,039 will have obtained a capital gain of 30.91%

Throughout the different reports that I have been publishing in 2020 on the evolution of the Dow Jones, I have been making a series of buy and sell recommendations. I would now like to highlight the most significant comments on each of these reports and the corresponding recommendations. As you can see the initial buy level placed it at Dow 26,600 points and the selling levels at 34,039 for December 2020 which are those that coincided with the resistance of the primary channel on that date, and that reached 03.05.2021 day in which it closed at 34.113, 23 reaching a close at 34.777 , 76 on Friday, May 7. Adjusting the resistance December 2020 to May 2021, the selling level would go from 34,039 to 34,127 so the capital gain would have been 31.25%.



"On July 13, 2020 I published an article titled: The Dow Jones on the Edge of the Precipice. In the final part of the article "Valuation" I wrote the following:

At the close of the July 10 session, the Dow Jones was 26,075 points just 525 points off the 26,600 resistance that should end the Dizzying recovery of the US index from the March lows, putting the Dow Jones on the edge of the precipice.

Two days later, on Friday, July 12, the Dow ended a great climb that placed the index above the 26,600 level turning resistance into support, passing the trend from downtrend to upside. The green line delimits one from the other."

"In the table above, you could see how on Tuesday, July 14, the Dow Jones was above the resistance at 26,642, 59 a rise of 556, 79 points which is equivalent to an increase of 2,13%. On Wednesday it reached 26,870, 10 points and on Thursday and Friday it retreated to end the week at 26,671, 95 points thus confirming that the resistance located at 26,000 points had worked perfectly slowing the fall of the last two days, as shown in the following table.

In the chart above you can see how at the end of July the Dow had been below the support zone at 26428, 32 points. On August 1, the U.S. index rose 0.89% closing at 26,664, 40 again standing just above the support. At the end of August it closed at 28,430, 05 reaching 29,100, 50 on September 2. At the end of September it closed at 27,781, 70. Everything suggests that he will try again to attack the 29,000 level, and it does not seem that it will be difficult to do so. Whether or not it manages to surpass february's all-time high remains to be seen, but the New York index has certainly set course for it."

A meteoric recovery

"Since the index set its low at 18,213, 65 points in March the rise has been meteoritic. The vertigo at heights close to the all-time high reached on September 3 at 29,199, 35 points pushed it back to 26,763, 13 on September 23 of this year, from where it bounced higher again."

"Without a doubt, the Fed's intervention has pushed the American stock market to a meteoric recovery; but we must also add Trump's interventions, whether they like it or not, have had a lot to do with the resistance to his downfall."

"The fall in the economy has hit companies increasing unemployment, but this has not affected the optimism of the president who has remained undaunted assuring that the country's economic recovery will soon come."

"This October will be crucial to reveal the direction the stock market will take. A narrow loss of Trump at the polls could lead the US into a major institutional crisis. On the contrary, a resounding defeat of Trump at the polls should not a priori cause a major pullback of the stock markets."

"According to my stock market theory that I have baptized with the name: "SHOCK WAVES" it is possible to enter the base of the ups front and exit practically at the ceiling of the resistance"

"It seems therefore that the American stock market will move to the sound of the polls of the elections, being able to break its historical maximum and set its sights on levels above the 30,000 points of the Dow."