The USMAI’s transition into a strong Bullish Zone presents opportunities

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The USMAI weekly trend has exhibited an upward momentum since last week, signaling a potential shift to a bullish trend. Initially, it was anticipated that the market would maintain a similar pattern this week, failing to solidify a bullish transition and likely entering a corrective phase by early December.

However, as this week concludes, the results indicate stronger-than-expected upward momentum, surpassing prior forecasts. This shift in performance suggests a successful transition into a bullish trend rather than the anticipated correction at the start of December.

Looking ahead, the short-term outlook points to a continued upward trend, expected to persist for approximately three weeks. By mid to late December, the market is projected to attempt a shift back into a corrective phase.

This revised outlook highlights a near-term opportunity for investors to capitalize on the bullish momentum, while keeping an eye on potential changes in mid-December as the market dynamics evolve.


Market Performance Overview

  • USMAI Closing Price: 6,051.0 (+1.11%)

  • Current Trend Zone: Bullish

  • Investment Position: Buy and Hold

The USMAI continues its upward trajectory, marking 14 weeks in a Bullish Zone. Surpassing prior forecasts, recent momentum indicates robust buying pressure, signaling sustained upward movement in the near term.


Long-Term Investment Strategy

Characteristics of the Bullish Zone:

  • Uptrend: Strong upward flow with intermittent minor declines.

  • Correction Trend: Temporary downward fluctuations within an overall rising trend.

Strategic Recommendations:

  • Position: Buy and Hold

    • Maintain long-term positions to capitalize on expected high returns and low downside risk.

    • Focus on holding assets through the Bullish Zone to maximize profits.

Performance to Date:

  • Entry into Bullish Zone: August 18, 2024

  • Duration in Bullish Zone: 14 weeks

  • Cumulative Gain: +7.5%

  • Buying Price: 5,630.4

  • Current Price: 6,051.0

  • Gain: +420.5

The market’s sustained strength suggests minimal need for strategic shifts, though investors should remain vigilant for potential corrections by mid-December.


Short-Term Investment Strategy

Current Trend Behavior:
The USMAI is transitioning from a Correction Trend into a robust Uptrend, marked by increased buying intensity and reduced selling pressure.

10-Week Forecast:

  • Trend Movement: Expected to follow an ascending rectangle pattern, with 60% downward trends and 40% upward trends.

  • Trend Intensity:

    • Upward Intensity: Stronger.

    • Downward Intensity: Moderate.

Strategic Recommendations:

  • Position: Buy (Bullish) and Hold.

    • Optimal Buying Timing: December 2, 2024 (target price: 6,056.0).

    • Optimal Selling Timing: December 9–16, 2024 (target price: 6,421.2).

Predicted Price Range (Next 10 Weeks):

  • Upper Bound: 6,368.3 (+5.2%)

  • Lower Bound: 5,929.9 (-2.0%)

  • Median Price: 6,149.1 (+1.6%)


Key Indicators and Insights

  1. Volatility of Predictions:

    • Low volatility is expected due to stable Buy-Sell intensity dynamics.

  2. Trend Turning Points:

    • A minor trend reversal is anticipated this week, with a higher probability of a shift in 4 weeks.

  3. Average Closing Price Predictions:

    • In Case of Rising: +1.7% (range: +2.2% to -0.9%).

    • In Case of Falling: -1.1% (range: +1.3% to -2.1%).


Analysis of Trend Zone and Intensity

  • Last 30-Week Average Zone Level: +35% (Bullish).

  • Current Zone Level: +52% (Bullish).

  • Expected 10-Week Zone Level: +45% (Bullish).

Trend Intensity Forecast:

  • Upward Intensity: +65% (strong).

  • Downward Intensity: -32% (moderate).


Summary of Key Actions

Action

Date

Price Target

Buy

Dec 2, 2024

6,056.0

Sell

Dec 9–16, 2024

6,421.2


Strategic Takeaways

The USMAI’s transition into a strong Bullish Zone presents opportunities for both short-term and long-term investors.

For Long-Term Investors:

  • Continue with a Buy and Hold strategy to maximize gains during this bullish phase.

  • Monitor for signs of a correction in mid-December but avoid premature selling.

For Short-Term Traders:

  • Plan to buy near 6,056.0 by December 2, targeting 6,421.2 for selling between December 9 and 16.

  • Leverage the current uptrend while maintaining flexibility to adapt to any market shifts.

The USMAI’s consistent upward momentum signals robust market health, providing a favorable climate for strategic investments through December.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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