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Downtrend exhaustion - Stock Market Timing Signals and trading strategies.

Downtrend exhaustion stock alert presents a stock market trading strategy based on combination of timing signals, technical indicators, trend analysis and pattern recognition. Stock market alert is a warning signal. It indicates that long term downtrend is exhausted and probability of long term trend reversal is high. Downtrend exhaustion stock market alert presents relatively low to medium risk - high reword stock pick for undervalued stocks. The strategy is based on taking long position on anticipation of downtrend reversal. Downtrend exhaustion timing strategy and stock trading system presents alerts for S&P 500 index members, ETFs and market indices. As S&P 500 trading system it shows excellent results for index timing also.

Downtrend Exhaustion

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- 4/17/2026 -
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Dow Chemical (DOW) Technical Analysis

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Summary:
Weekly :Overbought sectorLane's Stochastic is overbought
Daily :Williams' Percentage Range is oversoldPrice is close to the 50 Day Moving AverageThe price has declined below the moving average in the center of the Bollinger Bands
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It was the negative week for the Dow Chemical (DOW). During the week, the DOW dropped -3.41 points, or -8.74%, and closed at 35.60 on Friday, April 17, 2026. Weekly volume was 7% above average.

DOW is a member of Materials Sector. Materials is the second most overbought sector. Sector/industry rotation is considered a proven strategy to beat the market. Use the following links to find overbought/oversold technical indicators by Sector or by Industry.

Long-term trend: [See DOW long-term trend chart]
A long-term downtrend had started on February 7, 2023 at 60.88 and reached 20.40 on August 11, 2025. DOW lost 40.48 points, or 66.49%, in 130 weeks. The chart has formed a Broadening Right-Angled, Descending Wedge chart pattern. The trend support level is at 10.09 and resistance is at 60.36. A Broadening Descending Wedge pattern is considered to be a reversal formation. It usually appears in a mature trend, characterized by overbought/oversold long-term and short-term indicators, and often generates divergence on long-term indicators. Use the following link to access a Broadening Right-Angled, Descending Wedge chart pattern help, or use a Technical Stock Screener to see the list of stocks with Broadening Right-Angled, Descending Wedge pattern in a long-term trend.

Medium-term trend: [See DOW medium-term trend chart]
A medium-term uptrend had started on August 11, 2025 at 20.40 and reached 42.74 on March 31, 2026. DOW gained -22.34 points, or -109.51%, in 33 weeks. The price is now at the 31.96% retracement level.

Weekly Technical Indicators: [See DOW weekly technical indicators chart]
Weekly Lane's Stochastic is overbought. Use the Technical Stock Screener to see the list of stocks with overbought weekly Lane's Stochastic. Oscillators are designed to signal a possible trend reversal. They can act as alerts and should be taken in conjunction with other technical analysis tools. Oscillators can be used to confirm other technical signals. Use the following link to access Lane's Stochastic help.

The weekly MACD line is above its signal line since August 22, 2025. This is an indication that the medium-term trend is up. The distance between MACD and the signal line is relatively high, but getting smaller. It indicates that the current medium-term uptrend is still strong, and momentum is beginning to wane. Use the following link to access a MACD help.

Short-term trend: [See DOW short-term trend chart]
A short-term downtrend had started on March 31, 2026 at 42.74 and reached 34.80 on April 17, 2026. DOW lost 7.94 points, or 18.58%, in 17 days. The chart has formed a Broadening Descending Wedge chart pattern. The trend support level is at 29.04 and resistance is at 39.56. Use the following link to access a Broadening Descending Wedge chart pattern help, or use a Technical Stock Screener to see the list of stocks with Broadening Descending Wedge pattern in a short-term trend.

Daily Technical Indicators: [See DOW daily technical indicators chart]
Daily Williams' Percentage Range is oversold. Use the Technical Stock Screener to see the list of stocks with daily oversold Williams' Percentage Range. Use the following link to access Williams' Percentage Range help.

The daily MACD line is below its signal line since April 7, 2026. This is an indication that the short-term trend is down. The distance between MACD and the signal line is near its high and getting bigger. It indicates that the current short-term downtrend is strong.

During the last week, the price has declined below the moving average in the center of the Bollinger Bands. The Bollinger Bands are often used with a non-oscillator indicator like chart patterns or a trendline. The signals are considered more reliable if these indicators confirm the recommendation of the Bollinger Bands. Use the following links to access the Bollinger Bands Help, or use the Technical Stock Screener to see the list of stocks with the price above the Upper Bollinger Band or below the Lower Bollinger Band.

Price is close to the 50 Day Moving Average. While daily technical indicators are oversold, the 50 Day Moving Average is considered a support level. The moving average crossover signals work better when the stock develops a strong trend, but they are ineffective when the stock is in a trading range. Moving average crossover systems can be effective, but should be used in conjunction with trend patterns, momentum indicators, candlesticks and other aspects of technical analysis. Use the following links to access Moving Average Crossover trading technique, or use the Technical Stock Screener to see the list of stocks with the Moving Average close to the price level.

Daily Oscillators
Description Value Status Divergence Chart
Relative Strength Index (RSI) 34.41
Williams' Percentage Range (W%R) 81.20
Oversold
Lane's Stochastic (%D-Slow) 47.56
Greed/Fear Indicator (GFI) 33.58
Moving Average Converg./Diverg. (MACD) 1.45
Weekly Oscillators
Description Value Status Divergence Chart
Relative Strength Index (RSI) 67.68
Williams' Percentage Range (W%R) 30.00
Lane's Stochastic (%D-Slow) 84.99
Overbought
Greed/Fear Indicator (GFI) 70.55
Moving Average Converg./Diverg. (MACD) 2.12
Trading Signals
Description Value Chart
Upper Bollinger Band 42.02
Parabolic System 41.09
Weekly Stochastic Crossing 40.49
Weekly Trendline Resistance 39.56
20 Day Moving Average 39.42
Daily Stochastic Crossing 37.35
Price 35.60
50 Day Moving Average 35.56
Lower Bollinger Band 34.98
Weekly Trendline Support 29.04
Sector and Industry
Description Name Rank
Sector Materials 8
Industry Commodity Chemicals 117
Daily Trend
Description Value
Direction Down
Chart Pattern DownTrend
High 40.62
High Date 04/13/2026
Low 34.80
Low Date 04/17/2026
Weekly Trend
Monthly Trend
Description Value
Direction Down
Chart Pattern Broadening Descending Wedge
Status Valid
Resistance 39.56
Support 29.04
High 42.74
High Date 03/31/2026
Low 34.80
Low Date 04/17/2026
Description Value
Direction Up
Chart Pattern Uptrend
Status
Resistance
Support
Low 20.40
Low Date 08/11/2025
High 42.74
High Date 03/31/2026
Quarterly Trend
Yearly Trend
Description Value
Direction Down
Chart Pattern Broadening Right-Angled, Descending Wedge
Status Valid
Resistance 60.36
Support 10.09
High 60.88
High Date 02/07/2023
Low 20.40
Low Date 08/11/2025
Description Value
Direction Down
Chart Pattern DownTrend
Status
Resistance
Support
High 71.86
High Date 04/21/2022
Low 20.40
Low Date 08/11/2025
Warning: TheGreedyTrader.com presents weekly analysis. Technical indicators and trend parameters are calculated for the close of business day indicated on the top right corner of the screen.