D-JONES, Gap Will Fill Soon, Possible Reversal Ahead!

Hello Traders Investors And Community, welcome to this analysis where we are looking at the DOW JONES 4-hour timeframe perspectives, the upcoming decisive events in the structure, what we can expect after these events occurring and how possible outcomes can show up in the schedule. The DOW like other major indices recovered somewhat from the corona-breakdowns and lows seen this year where the SPX already made a new all-time-high the DOW is below it and although the indices recovered we should not ignore the fact that the rallies aren't necessarily fundamentally backed as many retailers rushed into the market smart-money staying outside and waiting on the sidelines, not to mention the divergence between real economy and stocks it is important that smart-money enters also where the question pops up if the breakdowns are already over or there is more to come, these facts also coming up in the technical picture of the DOW which is sending some interesting signals at the moment I detected how they possibly can play out over the next times.

Looking at my chart you can watch there that the index is just about to fill its gap which it still has lain there at around the 29.000 level, this gap-fill will highly possible play out the next times and this is also confirming on the smaller timeframes as the index is forming a triangle formation, this highly possible gap-fill can be traded in the long-side with overall targets at the 29.000 level from where the next moves are significantly important. Normally what happens often after such gap-fills reaching the gap and filling it is that supply entered the market as orders get filled and traders take profit, this is what also can show up here making the gap-fill-range around 29.000 a possible short-entry-zone as it is marked in my chart, what is supporting this preliminary pull-back is the fact that the index also ending with a wave-count in this level. This pull-back-scenario will be confirmed when the rising grey trendline is broken with a decisive volatile move to the downside the targets at the blue range can be expected where a support-cluster is lying in which the price can stabilize and back-up.

In this manner, thank you for watching, support for more market insight, all the best!

Information provided is only educational and should not be used to take action in the markets.

Comment:

ANALYSIS UPDATE: The DOW continued to complete the whole wave-count into the main upper resistance zones finalizing the final wave.

The DOW after moving into the crucial resistance zone emerged with massive bearish pullbacks and increased a huge bearish pullback momentum.