The Dow Jones rallied swiftly on Friday to hit resistance at 25100 levels and reverse. The spot rate closed at 24388 levels and it is expected to continue lower as US markets open today. Looking into the wave structure, the Dow Jones unfolded into an impulse drop between 26950 and 24100 levels earlier, labelled as Wave (1). Wave (2) possibly unfolded as a running flat and terminated close to 26000 levels. As of now, Wave (3) could be in progress, expected to unfold into 5 wave lower below 23000 levels going forward. If the above structure holds to be true, prices should ideally remain below 26000 levels, the termination point for Wave (2). A safe trading strategy could be to remain short and look to sell further on any intraday/interday rally towards 25100/200 levels, against 26000, with potential targets below 23000 levels respectively.
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Disclaimer:
This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.