DOW JONES: Is it forming a BLOW OFF TOP??
Dow Jones isn't just having a strong bullish momentum on the 1D timeframe but also on its 1W technical outlook where it maintains a steady bullish overall indicator score (RSI = 64.010, MACD = 036.840, ADX = 29.553). However there are growing concerns coming from the 1W chart as the 1W RSI is posting a Bearish Divergence, trading on a Channel Down while the actual price is on a Channel Up.
This is alarming because last time this showed up was in late 2021 and as we all know led to the bear market of 2022. However the Bearish Divergence prior to that (mid 2017) was false and Dow continued to rise instead for another 4 months before a correction to its 1W MA50. And that is the level that plays the most important role here, the 1W MA50. As long as it continues to support, we will have a bullish trend.
Actually, Dow seems to be attempting a breakout over the Channel Up this month, unlike December 2021. Failure to break though can result into a blow off top.
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This is alarming because last time this showed up was in late 2021 and as we all know led to the bear market of 2022. However the Bearish Divergence prior to that (mid 2017) was false and Dow continued to rise instead for another 4 months before a correction to its 1W MA50. And that is the level that plays the most important role here, the 1W MA50. As long as it continues to support, we will have a bullish trend.
Actually, Dow seems to be attempting a breakout over the Channel Up this month, unlike December 2021. Failure to break though can result into a blow off top.
## If you like our free content follow our profile to get more daily ideas. ##
## Comments and likes are greatly appreciated. ##
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