DIA trade ideas
DIA: How long can this go on?Notice the negative divergence in DIA. However, the similar is not evident on SPY or QQQ.
DOW JONES NEW HIGH POSIBLE AROUND $187Looking at the DOWJONES 3 hour Chart there is Green support line support coming out from July low. Also it broke the red resistance line. So ATH is a possible. Also when I connect High from April/May to the July high and draw the parallel line then the Green line and the red line crosses somewhere around$188 zone and creates a TRIANGLE. If you know how to play narrow triangles then you are a winner. Usually I leave playing triangle because choppy and side trades. But a good options strategies will make some good money for sure.
MA line will be tested on Monday open $DIA closed last Friday just above the Fast MA line that remained support.
The market will react to Friday's Stress Tests on Monday open and this line (the MA line) will be tested as support again.
A close below the MA line can send $DIA back towards the top of the Bull Flag near 180$
If the price will stay above the MA line it can continue north towards the completion of the bearish Butterfly pattern and the trend lines resistance zone near 190$.
This trading scenario is part of this week's FREE newsletters - The Weekly Markets Analysis - goo.gl
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Tomer, The MarketZone
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DOW JONES UPDATE 4 FUNNEW HIGHS ARE STILL STRONG POSSIBILITY TILL BEFORE OR AFTER ELECTION. CHARTS WILL BE UPDATED THEN.
Dow $DIA Inverse Head and ShouldersInverse head and shoulders pattern with successful test of neckline suggests higher prices ahead.
short on move in cloud money flow weak stoc crossedgeorgebelow 50/ add starting trend/transportation weak/cci and percent r in bottom range/relative strength weak/may starts weak period/macd crossed/george soros has large put bets on market
Bearish Bat Completed In DOW Industrials Using DIA As ProxyThis is the second DOW sell chart I am submitting. The first was daily, this one is HOURLY. My suggestion is that if you have an idea for an hour chart, do a fractal at least three times longer in time duration (i.e. one hour equals three hour fractal). The purpose of this submission is to see if the hourly chart is close to the daily. In this case they are. With the DOW positive for the year 2016, a Bearish Bat formation has completed. Here is the step by step setup: A 50% retracement of Impulse leg X to A is DOW 16,580; the C to B impulse leg approximated a point D downward reversal at 17,032 (a Fibonacci 1.618 level); the X to A impulse leg suggested a downward reversal at 17,235 (a Fibonacci .786 level); the DOW reversal at point D went slightly higher, but has started to sell down and should retrace to the .786 level of the C to D impulse leg, or 15,989 (red line on chart). If support fails in this area, a 1.618 retracement is approximately 14,237. The current RSI is coming off its highest levels of 2016, suggesting an extremely overbought condition. I did not include RSI in this submission because the bearish formation is the key of this work. Also, the end of impulse leg C to D is the fifth lower top for the DOW dating back to November of 2015. I believe this is yet another bearish confirmation. I do own DOG, as well as SH and RWM. These three issues rise as the DOW 30, S&P 500, and Russell 2000 fall. Needless to say I think the markets are setting up for some large declines. I offer these suggestions for your consideration. Best regards, Don.
DOW JONES Industrials Selloff Forecast (DIA As Proxy): The SetupWith the DOW positive for the year 2016, a Bearish Bat formation is developing. Here is the step by step setup: A 50% retracement of Impulse leg X to A is DOW 16,576; the C to B impulse leg approximated a point D downward reversal at 17,150 (a Fibonacci 1.618 level); the X to A impulse leg suggested a downward reversal at 17,233 (a Fibonacci .786 level); the DOW reversal at point D went slightly higher, but should retrace to the .786 level of the C to D impulse leg, or 15,976. If support fails in this area, a 1.618 retracement is approximately 14,231. The current RSI is coming off its highest levels of 2016, suggesting an extremely overbought condition. I do own DOG, as well as SH and RWM. These three issues rise as the DOW 30, S&P 500, and Russell 2000 fall. Needless to say I think the markets are setting up for some large declines. All of my technical work is based on daily chart time calculations. I offer these suggestions for your consideration. Best regards, Don.
