Dow Jones likely to face strong sell?Hi Guys,
The US 30 , Dow Jones is currently looking like its trying to build some upward momentum to head towards the resistance zones marked on the chart ( blue boxes) . The 50MA is acting as resistance so far and not allowing the Dow to clear the range that has been building over the last wo days. Should we clear the range there are two important zones where we may see selling pressure.
Looking left the first blue box is an important level as it has been used as resistance twice and recently the last support that was broken so because of that the previous support may become resistance and an area where sell setups are likely. It is also the 50% retracement of hi to low and has the 20dma and the AVWAP from the all time high in that zone which will provide resistance. Also to the left on the chart is a faint harmonic pattern which I mentioned in a previous article for a buy setup. The first take profit level of that pattern (its midpoint) is this level. Nice amount of confluence here to suugest sellers will show up.
The upper blue box is where I personally would like to see price reach. Obviously premum sell area with greater risk to reward . The daily chart has an order block at that level and the darker shaded box on the chart is essentialy the 4hr order block. There is also another bat harmonic developing with excellent fib ratios that has entry precisely in the 4 hour order block. Lower time frame entry could lead to nice sell trade from this level.
Safe Trading all
