DOW heading into resistance?
Hi Guys,
The US 30, Dow Jones, is currently heading towards what may be a resistance zone from where sell setups may arise.
The blue box with the line through it is that zone and the line represents the 1.618 retracement of bear market high to low. Both the Nasdaq and SP500 reacted to that particular fib retracement from their respective bear market high to low points and the Dow may do so as well.
All the signs suggest a pullback is likely. Dow is well extended from its 50dmA, heading towards the zone with momentum, Daily RSI back in overbought and showing divergence (two things together in specified resistance zone makes strong confluence), and lastly a massive butterfly harmonic pattern which has taken so long to develop lands precisely at that point. The Dow is also nearing the top of the bearish channel price has been travelling in lately. Smaller time frame sell setups using BOS, candlestick pattern, chart pattern and break of RSI back below overbought and retest could allow for nice risk to reward trade .
Safe Trading all
The US 30, Dow Jones, is currently heading towards what may be a resistance zone from where sell setups may arise.
The blue box with the line through it is that zone and the line represents the 1.618 retracement of bear market high to low. Both the Nasdaq and SP500 reacted to that particular fib retracement from their respective bear market high to low points and the Dow may do so as well.
All the signs suggest a pullback is likely. Dow is well extended from its 50dmA, heading towards the zone with momentum, Daily RSI back in overbought and showing divergence (two things together in specified resistance zone makes strong confluence), and lastly a massive butterfly harmonic pattern which has taken so long to develop lands precisely at that point. The Dow is also nearing the top of the bearish channel price has been travelling in lately. Smaller time frame sell setups using BOS, candlestick pattern, chart pattern and break of RSI back below overbought and retest could allow for nice risk to reward trade .
Safe Trading all
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