Following a successful test of its support at 233, DJI has rebounded strongly making at the same time a higher top. So, we are sitting on something that could potentially be a higher low. The bottom trendline of this potential channel must be tested again, and maybe again.
I am optimistic as we have tested 233 successfully, and we are also approaching the end of this descending triangle. As you can see, we haven’t even tested the bottom trendline of the 2017 bull run (which would have made a symmetrical triangle).
Until 233 holds, I am long.
*In the meantime, if you are looking to initiate a position, look for a double-bottom to be long and a double-top to short; these patterns are all over the chart lately.
Cheers,
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Good morning folks, As the earnings should drive the market up, I think that we could see a breakout on Monday. A lot of fear remains because of the geopolitical situation uncertainty. As such, investors will probably wait until the weekend to weight in any development. I'm building a small call position; if i'm right i could make a 1 to 4 bagger within just a few days. If i'm wrong, well i have these dying puts that I cannot get rid off anyway. Cheers,
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Good day folks, Yesterday DJI completed an Inverse H&S Pattern, even breaking out of the neckline for a few minutes. So I initiated a long position as I believe that we are on the support of the channel (or close). 238 is to watch here; if it doesn't hold, I will be short until 233 is reached and revaluate. My target is 253 which would bring us to the resistance trendline. After that, well, time to short again! I will update.
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Let see if it holds here. If it does, we could have another short-lived upside.
But it looked even more strongly like this earlier in the Feb-onset crackup, but then it fell even lower.
tipere445
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@iGoddard, you're right. If 240 doesn't hold, I guess we will go back to 233. We'll see.
iGoddard
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@tipere445, still looking up! Here's the update on my model, looking for the moment like 2017 Support held...
However, lots of potential downturn issues loom on the horizon, war in Syria and possibly impeachment. Even if it doesn't stick, impeachment proceedings typically see a steady downturn. And Trump's negotiation style seems to be to make statements designed to rock the boat and dominate the news cycle. But after he's shocked those he's looking to influence, he backpedals a bit as a more amicable resolution is approached. His feud turned possible breakthrough with N Korea's president is a classic case in point. But his style is guaranteed to produce a rocky market. Let's hope it proves worth it in the long run.
Possible, but what other catalysts are there to drive down the market? Technically it looks ready to begin another rally.
tipere445
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@sup3rjade, Trade war with China, missiles strikes in Syria, no deal with North-Korea and bad earnings (but I think that the earnings will ultimately drive a rally). I think that this could be the last rally in the next few months: my theory is that we need to make at least a double top on the RSI to see a definitive crash. For this theory to be good, we need to go up, and the longer it takes, the less chance it has to happen imho.
But it looked even more strongly like this earlier in the Feb-onset crackup, but then it fell even lower.