Dow may face strong resistance?
Updated
Hi Guys.
The US 30, Dow Jones is fast approaching an area that may see some strong selling pressure.
Ive written previous posts regarding The Fib 1.618 retrace of Dows bear market high to low is the zone I have drawn on the chart.
Both Dow's counterparts, SP 500 and NAS100 corrected at their respective 1.618 retracements of the bear market.
The Dow has been travelling in the channel on the chart and it is now at the upper part right as we head into that zone.
Also RSI is showing clear divergence on daily, for added confluence entering into a potential sell zone. Preferably having RSI enter overbought again and then look for sell trades on lower time frame for potential big risk to reward play.
There is a harmonic forming if price does follow the path to the zone and pulls back. The two possible patterns could become either a cypher whose entry point lands conveniently on the lower channel line or should we break the channel low then a shark pattern where the entry is between 0.886 and 1.13.
Safe Trading all
The US 30, Dow Jones is fast approaching an area that may see some strong selling pressure.
Ive written previous posts regarding The Fib 1.618 retrace of Dows bear market high to low is the zone I have drawn on the chart.
Both Dow's counterparts, SP 500 and NAS100 corrected at their respective 1.618 retracements of the bear market.
The Dow has been travelling in the channel on the chart and it is now at the upper part right as we head into that zone.
Also RSI is showing clear divergence on daily, for added confluence entering into a potential sell zone. Preferably having RSI enter overbought again and then look for sell trades on lower time frame for potential big risk to reward play.
There is a harmonic forming if price does follow the path to the zone and pulls back. The two possible patterns could become either a cypher whose entry point lands conveniently on the lower channel line or should we break the channel low then a shark pattern where the entry is between 0.886 and 1.13.
Safe Trading all
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