Dow Jones might take a small break from the race
Updated
The mid-term chart shows signs of exaggeration: After an awesome rally, the Dow Jones might need a little break before picking up the race again
In the mid-term chart with daily candles, the price has now reached the upper areas of the average oscillation corridor.
This means, that the price will have a hard time to push even higher while it is more easy for the price to fall back to the SMA 20.
While the outer corridor still leaves some room until 33 245, it is unlikly that buyers will build up enough pressure to touch this barrier or even to move above this level.
Looking below the current price, we see that the corridor now leaves room until 30 721 and even 30 060.
It seems logical to me that after the last days, buyers will take a short break. Chances are high that we see the price touching the SMA 20 at 31 630 or even falling a bit beyond this level before buyers will return in greater numbers.
What also indicates that a small correction might be imminent is the fact, that the current price has a large distance to the SMA 200 (around 14%). As we know, the price always tends to return to the long-term SMAs when moving too far away. Please also note that today's candle might be interpreted as a Bearish Hammer (Hanging Man) which usually is a reversal candle.
I doubt that an upcoming correction might be too strong, though. On the way down, the price faces multiple support levels (only two of them are shown in this chart). They have served as areas of support during the last weeks, so chances are high that buyers will closely watch those marks.
Summary:
During the next 1-3 days, we might see a small correction followed by a short window of stagnation before the race might be picked up again.
On the long-term, though, I remain bullish.
Please know that I am a bloody amateur in trading, which means you shouln't take my opinion into account when making trading decisions. Let me know your thoughts in the comments!
Note
Staying bearish for the next days.Trade closed: target reached
Target reached around 32 000(trend line, support line)
Closed successfully :-)
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