DJI - Short
Updated
Looking at our current structure for the DJI 1-hour chart.
I believe we have a broadening top formation which sets a series of higher highs and lower lows that play within a range / set of trend-lines, typically the 3rd higher high is the final high, which I also have additional confluence to believe this could be the final high as well.
Overall, I believe this is still the 4th wave out of the 5 wave structure down from the previous ATH. The market has been very uneasy lately as we are trying to open up the country and allow people to work, but, the virus is still around and we may not get the reaction / results that we were hoping for by opening everything up. This also coincides with the broadening formation - the psychology behind it shows that there is indecision between the buyers and sellers / bulls and bears. I also think stimulus checks and money from the Fed has a roll to play with this current structure.
My 2 personal targets that I would ladder shorts between are:
1) The low of wave 1 = $24,681 - This is a simple Elliot Wave principle, that wave 4 can not end in wave 1 territory, except by a wick. We know there are sometimes small errors / exceptions for if it barely enters this region.
2) A 1:1 extension of wave A (within our current ABC / wave 4 structure) = $25,116
So I would be laddering shorts between $24,681 - $25,116. The current price is roughly $24,750.
There is also a Gann Fan / Angle that I have placed at the ATH, and there is a resistance line that is present within this range, which looks like the DJI would meet around $25,000.
I have a few ideas as to where wave 5 will end up, but I won't speculate as to where I believe it will reach yet - and you have to be prepared for everything!
My first immediate target would be to test our most recent low / set a new low, but I believe that this could be our final wave up short term.
Agree, disagree, comments?
If you enjoy my content, make sure to 'like' and 'subscribe' for more!
Thanks,
I believe we have a broadening top formation which sets a series of higher highs and lower lows that play within a range / set of trend-lines, typically the 3rd higher high is the final high, which I also have additional confluence to believe this could be the final high as well.
Overall, I believe this is still the 4th wave out of the 5 wave structure down from the previous ATH. The market has been very uneasy lately as we are trying to open up the country and allow people to work, but, the virus is still around and we may not get the reaction / results that we were hoping for by opening everything up. This also coincides with the broadening formation - the psychology behind it shows that there is indecision between the buyers and sellers / bulls and bears. I also think stimulus checks and money from the Fed has a roll to play with this current structure.
My 2 personal targets that I would ladder shorts between are:
1) The low of wave 1 = $24,681 - This is a simple Elliot Wave principle, that wave 4 can not end in wave 1 territory, except by a wick. We know there are sometimes small errors / exceptions for if it barely enters this region.
2) A 1:1 extension of wave A (within our current ABC / wave 4 structure) = $25,116
So I would be laddering shorts between $24,681 - $25,116. The current price is roughly $24,750.
There is also a Gann Fan / Angle that I have placed at the ATH, and there is a resistance line that is present within this range, which looks like the DJI would meet around $25,000.
I have a few ideas as to where wave 5 will end up, but I won't speculate as to where I believe it will reach yet - and you have to be prepared for everything!
My first immediate target would be to test our most recent low / set a new low, but I believe that this could be our final wave up short term.
Agree, disagree, comments?
If you enjoy my content, make sure to 'like' and 'subscribe' for more!
Thanks,
Trade active
Target has been hit, however, this was an easy / short-term target. Much more downside in my opinion, time will tell!
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