DOW Elliott Wave Analysis for Monday 21/08/2023We are waiting for more data to come up with a reliable EW count and trade setups.
Dowjonesanalysis
Dow Jones Industrial Average Key MomentMACRO MONDAY
Dow Transportation Average Index DJ:DJT
The Dow Jones Transportation Average (DJT) is a price-weighted average of 20 key transportation stocks traded in the United States.
The transportation sector acts as a leading indicator as it is further up the value chain ahead of the final products being sold by companies in Dow Jones Industrial Average $DJI. For this reason, in some circumstances we can use the DJT as a helpful leading indicator for the direction of the economy
Currently we are at a critical juncture on the DJT chart as we are testing significant resistance levels
- The DTJ Index is at a critical diagonal and horizontal
resistance level
- A break through or rejection of the resistance will
provide insight into the direction of the economy
- There is a potential Head and Shoulders pattern
that needs to be validated or invalidated which will
be defined by the price reaction to the resistance
zone.
We can observe what happens over the coming weeks and how price reacts to the resistance. Can it break above it and turn it into support?
When the DJI is climbing higher while the DJT is falling, it can be a signal of economic weakness ahead. A divergence of this sort means goods are not being transported at the same rate they are being produced, suggesting a decline in nationwide demand.
This type of divergence occurred prior to the March 2020 crash with the DJT making its ATH in Dec 2020, thereafter the DJI made a new ATH in February 2020 whilst the DJT was closing almost 5% lower making a lower high. Those that study Dow Theory were key observers of the divergence and acted accordingly safeguarding their portfolios.
Thankfully, at present there is no divergence. I will follow up in the comments with a chart showing that the DJI and the DJT are currently very closely aligned. Regardless paying close attention for a divergence could be very beneficial for your portfolio. I will certainly be on the look out and notify you in the event of.
Thanks for reading and welcome to Macro Mondays
PUKA
DOW Elliott Wave Analysis for Wednesday 16/08/2023The short trade was successful. Now we are reaching the wave (c) and wave ((y)) areas. From here we can initiate a long trade.
DOW Elliott Wave Analysis for Tuesday 15/08/2023If the double correction plays out, it is a nice buying opportunity. We believe a long trade can be initiated from the wave (c) and wave ((y)) area.
DOW Elliott Wave Analysis for Monday 14/08/2023If the double correction plays out, it is a nice buying opportunity. We believe a long trade can be initiated from the wave ((y)) area.
DOW Elliott Wave Analysis for Friday 11/08/2023If the double correction plays out, it is a nice buying opportunity. We believe a long trade can be initiated from the wave ((y)) area.
Dow Jones - 10/08Pair : DJI - Dow Jones
Description :
Completed " 123 " Impulsive Wave
Falling Wedge in STF and Rejection from UTL
S / R Level
Fibonacci Level - 38.20% / 50.00%
Divergence - RSI
DOW Elliott Wave Analysis for Wednesday 09/08/2023If the double correction plays out, it is a nice buying opportunity. We believe a long trade can be initiated from the wave (y) area.
DOW Elliott Wave Analysis for Monday 07/08/2023It looks like we will get a larger corrective move that goes deeper into the area of wave ((iv)). The next completion of the corrective structure is again a buying opportunity.
DOW Elliott Wave Analysis Higher Timeframe (06/08/2023)Investors should wait for the pullback to buy again. Now we are rather in the area to take profit. Traders should analyze the lower timeframe for opportunities.
DOW Elliott Wave Analysis for Thursday 03/08/2023It looks like the correction is taking place. We need to take out one more low before the correction is complete. However, a longer corrective move that goes deeper into the area of wave ((iv)) is also possible.
DOW Elliott Wave Analysis for Wednesday 02/08/2023In the 1 hour, it looks like the DOW finished an impulse to the upside. We are expecting more downside to finish a corrective move. We go long after a clear ABC pullback.
DOW Elliott Wave Analysis for Tuesday 01/08/2023In the 1 hour, it looks like the DOW finished an impulse to the upside. We are expecting more downside to finish a corrective move. We go long after a clear ABC pullback.
DOW Elliott Wave Analysis for Monday 31/07/2023In the 1 hour, it looks like the DOW finished an impulse to the upside. We are expecting more downside to finish a corrective move. We go long after a clear ABC pullback.
DOW Elliott Wave Analysis Higher Timeframe (29/07/2023)Investors should wait for the pullback to buy again. Now we are rather in the area to take profit. Traders should analyze the lower timeframe for opportunities.
DOW Elliott Wave Analysis for Friday 28/07/2023In the 1 hour, it looks like the DOW finished an impulse to the upside. We are expecting more downside to finish a corrective move.
DOW Elliott Wave Analysis for Wednesday 26/07/2023In the 1 hour, it looks like the DOW is close to finishing an impulse to the upside. A short trade can be initiated but be careful because you are trading against the main direction.
Dow Jones -> Fighting The Little Brother NasdaqHello Traders and Investors ,
my name is Philip and today I will provide a free and educational multi-timeframe technical analysis of DowJones 💪
With the recent retest of a previous monthly resistance level, now turned support, and in confluence with a retest of the 0.382 fibonacci level the Dow Jones started a new bullrun which will certainly continue going into 2024.
On the weekly timeframe the Dow Jones just broke above a major previous weekly bearish trendline and since then created a solid +5% rally and with the recent bullish momentum I simply do expect the creation of a new all time high soon.
I have also been bullish on the daily timeframe on the Dow Jones for quite some time and so far everything payed off nicely - I am still waiting for a drop though to then scale into more buys on the Dow Jones to perfectly ride the next bullish wave.
Keep in mind: Don't get caught up in short term moves and always look at the long term picture; building wealth is a marathon and not a quick sprint 📈
Thank you for watching and I will see you tomorrow!
My previous analysis of this asset:
DOW Elliott Wave Analysis for Tuesday 25/07/2023In the 1 hour, it looks like the DOW is close to finishing an impulse to the upside. A short trade can be initiated but be careful because you are trading against the main direction.
DOW Elliott Wave Analysis for Monday 24/07/2023In the 1 hour, it looks like the DOW is close to finishing an impulse to the upside. However, we cannot exclude another push as a wave ((iii)). Therefore, it might be a risky short trade.
DOW Elliott Wave Analysis Higher Timeframe (22/07/2023)The EW count shows an ending upward structure. However, depending on what we get next week, alternative EW counts are possible. Investors should wait for the pullback to buy again. Now we are rather in area to take profit. Traders should analyze the lower timeframe.
DOW Elliott Wave Analysis for Friday 21/07/2023In the 1 hour, it looks like the DOW is close to finishing an impulse to the upside. If we see the fifth wave ending with divergence, traders can initiate a short (against the main direction).
DOW Elliott Wave Analysis for Thursday 20/07/2023In the 1 hour, it looks like the DOW is close to finishing an impulse to the upside. If we see the fifth wave ending with divergence, traders can initiate a short (against the main direction). A safer way to trade is to wait for the wave ((ii)) pullback and go long from there.
