Dow to test critical supports
Hi Guys,
The Dow has sold off so far today and is heading towards possible support areas.
The first blue box is the low of the daily support as well as the 100dma ( red line). Given the current downward momentum I think we might get much support here and if we break through there then the 200dma (purple line) and next support cluster ( lower blue box) will be an area where we may see a bounce from. There is a bat harmonic pattern developing with excellent fib ratios that has entry around that zone. Also the important AVWAP black line) taken from the low made in October may act as support around that zone.
Ensure proper risk management before even thinking of placing any trades at the moment.
(The 200dma is not actually on the chart but its sitting around 38100 level as of this writing.)
Safe Trading all.
The Dow has sold off so far today and is heading towards possible support areas.
The first blue box is the low of the daily support as well as the 100dma ( red line). Given the current downward momentum I think we might get much support here and if we break through there then the 200dma (purple line) and next support cluster ( lower blue box) will be an area where we may see a bounce from. There is a bat harmonic pattern developing with excellent fib ratios that has entry around that zone. Also the important AVWAP black line) taken from the low made in October may act as support around that zone.
Ensure proper risk management before even thinking of placing any trades at the moment.
(The 200dma is not actually on the chart but its sitting around 38100 level as of this writing.)
Safe Trading all.
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