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ashaman

DJI Dead Cat Bounce to start Wednesday

Long
Dow Jones Industrial Average Index (DJ:DJI)  
ashaman Updated   
DJ:DJI   Dow Jones Industrial Average Index
Elliott Wave Head and Shoulders Double Top or Bottom DJI
6
2
elliottwaves headandshoulders doubletoporbottom dji
Daily Godmode on DJI is bottomed out, Daily RSI is in the 20s, and the market closed at a key support.
A retest of the breakdown level at 23500 is expected, although it could get caught on the 0.382 fib halfway to the support/resistance level. I will be taking profit with two orders, one at the 0.382 fib and the other at 23475.
Comment:
After watching the action today, I get the feeling that this will gap down over the weekend, only for the gap to get bought as everyone who shorted the bottom gets rekt.

I typed this update out after market close on Christmas Eve, and it's been sitting unposted in my browser all :-(

If you aren't already in long, I wouldn't chase - much better to wait for a 1h/4h/1d (depending on the timeframe you trade) higher low to make entry - set SL to execute in the event of a lower low. This *should* retest the breakdown level, but the brutality of the bearish impulses has been consistently surprising me (didn't even make a daily HS at all time high, just dumped to hell.... Hence the split TP orders.
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