Dow Jones Index (DJI) Bearish Setup: Post-ATH Pullback
Context: After reaching all-time highs (ATH), the Dow Jones is showing signs of a potential pullback. The price is now consolidating within a triangle pattern, indicating a possible trend reversal 📊.
Bearish Scenario: Following ATH, it’s common for markets to face profit-taking or a corrective phase, and we could be witnessing that now. A breakdown below the support at 44,250 could lead to a deeper retracement towards the 42,500–43,000 range.
Target: Watch for a move to the key support levels, with the 42,500–43,000 zone as the next major area to watch for a potential bounce or continuation of the downtrend.
Stop Loss: Above the recent high at 44,800 to ensure minimal risk in case of a fakeout.
EMA Alignment: Short-term bearish bias as the price is staying below the EMAs, signaling weaker upward momentum 🔻.
📉 After ATH: It's typical for markets to experience retracements after making new all-time highs, as the bullish momentum starts to fade. This could be the start of a deeper correction. Let’s wait for confirmation of the breakdown before entering! 🕵️♂️
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