Dow US 30 on the verge of correction?
Updated
Hello Fellows!
I hope you are all swell!
The Dow Jones 30 index has been rallying since Wednesday, more like blasted off without any form of correction. Having touched the DiNapoli MACD on the Daily it seems to be retracing.
The idea is to short the index as per the 'Butterfly' pattern which is nearly complete with an entry at the 127.2 XA extension marking the D point.
Stops can be placed above the 141.4 XA extension, while TP will be set at the 38.2% AD retracement.
It must be noted that 'Butterflys' have a tendency to reach both the 127.2 and 161.8 extensions, so it is possible that the price might ignore the 127.2 and aim higher. Having said that, it is recommended to split position size accordingly and/or widen the SL.
I would personally try to enter as per the idea and, if stopped out, re-enter at or near the 161.8 extension.
Take care, trade safe and stay dandy!
Note: The information created and published here is not prohibited, doesn't constitute investment advice, and isn't created solely for qualified investors.
I hope you are all swell!
The Dow Jones 30 index has been rallying since Wednesday, more like blasted off without any form of correction. Having touched the DiNapoli MACD on the Daily it seems to be retracing.
The idea is to short the index as per the 'Butterfly' pattern which is nearly complete with an entry at the 127.2 XA extension marking the D point.
Stops can be placed above the 141.4 XA extension, while TP will be set at the 38.2% AD retracement.
It must be noted that 'Butterflys' have a tendency to reach both the 127.2 and 161.8 extensions, so it is possible that the price might ignore the 127.2 and aim higher. Having said that, it is recommended to split position size accordingly and/or widen the SL.
I would personally try to enter as per the idea and, if stopped out, re-enter at or near the 161.8 extension.
Take care, trade safe and stay dandy!
Note: The information created and published here is not prohibited, doesn't constitute investment advice, and isn't created solely for qualified investors.
Note
Order activated!Note
The price has closed above the 127.2 retracement on the 4H TF with a solid candle. I would suggest to place SL above the said candle while moving TP at break-even.Trade closed manually
For all those who might still be holding, I suggest closing at the current levels as price action seems to be stalling, which is unfavorable for bears.
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