KrunchieKilleen

DOWI: what goes up does not have to come down, but

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DJ:DJI   Índice industrial médio Dow Jones
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What goes up does not have to come down. The story of investment in stocks and shares over the long run, as we all well know, is up and up. From a value of 1,000 in 1980, the Dow Industrials index has risen to almost 17,000 today, a 17-fold increase, and will continue to rise in the future. However, when it accelerates at too high a pace, in the judgment of the market, it has to suffer a correction and come back into line. Simple lines connecting the peaks and the bottoms of the graph indicate the range within which the value will move. The pattern is to fall back sharply when it hits the Resistance Line. When it falls, its pattern is to drop to the Support LIne at least. The graph has now hit the top of its "allowed" range and must suffer a severe correction soon.

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