DIA is forming the Head

The DIA is forming the head of the head and shoulders formation. Some people don't expect it to drop to around 26000 but we have been due for a pullback lately. The bottom of the head will hit around Feb 19th.

It will then form the right shoulder. That is an approximate time. I am not looking at the time target of the right shoulder until we finish the formation of the head.

I don't know where the right shoulder will hit. I have two previous support levels. I kind of would like it to stop at around 25,000 but I think it will go lower until we hit 23,000

I use the CCI (as opposed to the RSI), MacD, and the Stoch RSI and the crossover of the EMA and the MA, for entry points.

Comment:

Actually, I believe the head and shoulder's pattern has a formulation of how far the right should will go. So according to that formula it should hit around 20700.

*Also sorry for the small print on the chart.

Trade closed: stop reached:

The DOW is still going back up. I will post another idea of what I think will happen.