Short
Dow Jones ready to drop towards 18200 as Wave (3) progresses
Dow Jones might have carved a meaningful lower high around 27600/700 levels over the last week. The sharp reversal thereafter has broken its counter trend line, confirming a reversal lower against 27700. The subsequent rally is just a retracement of earlier drop between 27700 and 24544 and has managed to reach fibonacci 0.618 retracement levels. Furthermore, also note the indice faces stiff resistance as it tests the backside of former support trend line around 26300/500 levels. The larger degree wave structure is as follows: Dow Jones had earlier dropped between 29600 and 18200 sub dividing into 5 waves, Wave (1) on the chart. The counter trend rally A-B-C was a zigzag, which terminated just above fibonacci 0.786 retracement around 27600/700, Wave (2) on the chart. If the above counts are correct, Wave (3) is underway since 27600/700 highs and should drag lower towards 18200, going further.
Strategy:
Aggressively short against 29600, targeting below 18200.
Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.
Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.
Strategy:
Aggressively short against 29600, targeting below 18200.
Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.
Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.