DJI W/C 17 Sept- Entries for long and short trades.
After the previous hit of the bullish reversal at 26150 caused a pullback, that turned into a bull flag that broke through to WR2. A pullback followed and price elected the bullish reversal by a hairs breadth.
Pivots show an open above the weekly pivot meaning a bullish bias for the week. Coupled with the election of the bullish reversal this points to an initial further rally. For the bear case, we are near the top of the channel/broadening formation and MR1, WR1 + R2 form a strong resistance cluster along with this trend line between 26320-500. Volatility is also due a breakout
Therefore I am looking to scale in for short entry at these prices for good R:R.
25600-700 gives strong support with WS2, a bearish reversal and MP cluster. A buy here would be a good entry for either a bounce or entry into the trend if it continues higher.
Weekly pivots continued to give accurate entries last week, with WR2 a high probability entry on Friday that coincided perfectly with Trump's tweet for a pullback to WR1.
Pivots show an open above the weekly pivot meaning a bullish bias for the week. Coupled with the election of the bullish reversal this points to an initial further rally. For the bear case, we are near the top of the channel/broadening formation and MR1, WR1 + R2 form a strong resistance cluster along with this trend line between 26320-500. Volatility is also due a breakout
Therefore I am looking to scale in for short entry at these prices for good R:R.
25600-700 gives strong support with WS2, a bearish reversal and MP cluster. A buy here would be a good entry for either a bounce or entry into the trend if it continues higher.
Weekly pivots continued to give accurate entries last week, with WR2 a high probability entry on Friday that coincided perfectly with Trump's tweet for a pullback to WR1.
Comment:
Price touched WR1 and the limit of the sell zone, may get a second push into it but I expect a drop soon. If it motors through the resistance it’s bullish with the next target the bullish reversal at 26800.
