DOW JONES rejected on the 1D MA50
Dow Jones (DJI) got rejected yesterday after marginally breaking above the 1D MA50 (blue trend-line) for the first time since May 05. This comes after 3 weeks of sideways trading following the Lower Low of the Channel Down on June 17. That was clearly mentioned and projected 1 month ago s shown on our idea below:
The recent consolidation though comes as a technical surprise but can be viewed as a product of the low volume summer season. Technically, a 1D candle closing above the 1D MA50 is a buy signal, targeting the Lower Highs (top) trend-line of the Channel Down. The last such rebound reached the 0.618 Fibonacci retracement level. This time that is just over the Channel and with the 1D MA200 (orange trend-line) declining, we can say that this is the 2nd break-out signal to look for.
On the other hand, a break below the June 17 bottom (29680), would most likely coincide with a break below the 1W MA200 (red trend-line) and will be taken as a sell break-out signal targeting the -0.236 Fib.
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The recent consolidation though comes as a technical surprise but can be viewed as a product of the low volume summer season. Technically, a 1D candle closing above the 1D MA50 is a buy signal, targeting the Lower Highs (top) trend-line of the Channel Down. The last such rebound reached the 0.618 Fibonacci retracement level. This time that is just over the Channel and with the 1D MA200 (orange trend-line) declining, we can say that this is the 2nd break-out signal to look for.
On the other hand, a break below the June 17 bottom (29680), would most likely coincide with a break below the 1W MA200 (red trend-line) and will be taken as a sell break-out signal targeting the -0.236 Fib.
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** Please support this idea with your likes and comments, it is the best way to keep it relevant and support me. **
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