DOW Elliott Wave Analysis for Friday 18/08/2023The short trade was successful. Now we reached the wave (c) and wave ((y)) areas. From here we can initiate a long trade.
Dowjonesindustrial
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 Thursday 17/08/2023The short trade was successful. Now we reached the wave (c) and wave ((y)) areas. From here we can initiate a long trade.
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 Higher Timeframe (12/08/2023)In the higher timeframe, we are expecting more upside to finish a wave (3). However, there is a chance that we are still doing the higher degree wave II correction.
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 Thursday 10/08/2023If 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 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 Tuesday 08/08/2023If 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 Thursday 27/07/2023In 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 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 3000$ predictedHere you find attached my old forecast for the DJI where I was calling a bottom and looking for upside resumption back in May.
We successfully rallied ever since and now we could see a little pullback to then reach wave (iii) target.
Feel free to ask me questions and trade safe!
