DOW JONES Potential H&S at H4, Correction or Time for Reversal?E-mini Dow Jones Futures having a great rally since March 2020, and it was corrected in late November/October 2020. When people worried about the deep correction, Dow continue the rally until 33000. That was Amazing! Wasn't it ? So, here the idea i wanna share to you guys. I try to take a look at the H4 chart and Daily chart, but also trying to compare with a short of Weekly chart.
In H4, we found the wall at 32600, and i already mention yesterday that it would be good area to Sell. And in fact today, we are also have 32680 as a resistance. And that's why it is down for now. But for how long or how much bearish inside this pattern? I divide this H4 chart as 2 potential pattern. 1st one is a small double bottom. Support area is 32300 - 32370's. Around those areas we probably see the potential rebound. But, unfortunately I only see the rebound as a temporary uptrend. This is probably will be blocked at its neckline. And guess what, the neckline is on the same level as yesterday..32673 - 3680's. So, when you see the rebound, and then it can not run more above the neckline, probably we will see the Double Bottom failed to cross the neckline. And switch to next figure, that is figure number 2. The 2nd potential pattern is Head & Shoulders. From this pattern I found that 32300 - 32370's is a neckline. So, if the Double Bottom already failed when the support areas broken, that also means the Head & Shoulders makin a good confirmation. So, it will followed with another pressure beyond 32300.
In the Daily chart, we found this pattern is doing their pullback after the breakout in 10 March 2021. So, aside of we are having the potential downtrend from Head & Shoulders in H4 Chart, we are also having the potential Pullback only. It means, in Daily chart, we only have limited downtrend for Dow Jones. And, the last thing is Weekly outlook I also found that last week candlestick was closed with Doji Candle, and it is in a form of Shooting Star. I assume that this week candle will be bearish. But, if this week confirmed as bearish candle, that means the collaboration between the last 3 candles making a good formation of Evening Star. That means, next week will be also resume the downtrend. But, it still too far away to read what could be happen for next week. But at least we will have the downtrend enough for this week.
Catch the video, you will know what I mean in this idea!
Thank you All,
Irpan Supiandi, ST
(Research and Analyst Divison for PT Agrodana Futures,
Indonesian Brokerage Firm
Regulated under BAPPEBTI, KBI and ICDX
