Is Stock Market Entering Into A New Bull Run?

Considering this, there is a possibility that the market is embarking on a significant and thrilling phase.

Market technician indicators show that a bullish trend is waiting, and the market is offering fresh prospects, but also eventually presenting considerable hazards for investors.

For those investors who rely exclusively on technical analysis and diligent risk and position management, the recent recovery in significant stock indexes is a promising indication.

The preceding month displayed a lackluster performance and was beginning to unsettle some of the world’s biggest market indexes.

Moreover, the stocks of some big companies have also seen uncertainties. Although experts are favoring the string bulls, there are still some uncertainties that are circling the market.

For instance, the fear of inflation can compromise the spending power of investors. On the flip side, the increase in interest rate by Fed can bring stock prices down.

The stock market has seen many individual investors selling their holdings in a state of panic last week.

And some investors invested a significant amount in put options, anticipating a downfall on Thursday and Friday.

Moving Forward Price Upbeat is On Cards

All of a sudden the prices are being upheld by the intervention of buyers, and these recoveries are happening at significant moving average thresholds.

Investors should be observing the 200-day moving averages of the key indices with great attention. Understanding both short-term and long-term trends of the overall stock market is crucial.

Otherwise, even skilled traders have a reduced chance of consistently profiting from trades. And increasing their account without this knowledge can drop to approximately 30%.

What Does Dow Jones Chart Indicate?

The price average chart of Dow Jones shows that it has recovered from a support level near its 200-day MA back in December.

This presents an encouraging indication. It shows the stability of the trading range, without any significant fluctuations.

The longer and more complex patterns on the chart indicate the sideways movements and also show the range of the next level of resistance.

If the market maintains this trend, the three-month break could result in a strong and impactful rally.

What Does S&P 500 Current Trend Indicate?

The S&P 500 appears to have discovered a level of support. By the end of the last trading week, the index has gained more strength.

On the other hand, NASDAQ Stock Exchange has also seen a resurgence from its 200-day MA. This indicates that currently there is strong support for the index.

Moreover, investors’ sentiment has also returned regarding making investments in stocks.

The majority of the investors are looking for strong technical indicators. But, it has also been advised that simple signs of strength and weakness should also be considered.

Apart from that, small-capitalization stocks have been displaying notable strength as a distinct sector of the market over the past few months.

That’s the tricky part, the majority of investors ignore the penny stocks and look for the bigger stocks.

In bigger stocks risk is also higher. In penny stocks risk is very minimal. But, penny stocks are the best investment to earn sustainable growth.

Amidst the general fragility observed in the markets throughout February, small-cap stocks have demonstrated greater resilience.

Small stocks up to some extent have outperformed their bigger counterparts, thus presenting a hopeful indication. This clearly shows that the stock market is about to enter a bullish trend.

For instance, Russell 2000 iShares is very much higher than its 200-day MA. This gives it a significant level of support. As of now, strong bulls are present in the small stock market indexes.

Moreover, the growth stocks are also showing great strengths. As too much is going on it is important for investors to continue to monitor the market actively.

As the new week has started the market has made a remarkable recovery, this positive outlook is expected to last for a couple of months. Hence now is the best time to invest in the stock markets.