Short-Term Bullish Bias on US Indices
DJI (4hrs) formed a hammer after touching its current uptrend line.
With the next candle breaking above the hammer's we have expectations of demand>supply.
Thus, we have short term bullish bias that DJI will trade upwards to test its Gap at 26,420 level which is also a confliuence of the 50%-61.8% zone.
Stochastic indicator has also exited its oversold zone which potentially signifies a momentum reversal.
A break below the low of the hammer will see further downwards move.
With the next candle breaking above the hammer's we have expectations of demand>supply.
Thus, we have short term bullish bias that DJI will trade upwards to test its Gap at 26,420 level which is also a confliuence of the 50%-61.8% zone.
Stochastic indicator has also exited its oversold zone which potentially signifies a momentum reversal.
A break below the low of the hammer will see further downwards move.
Trade closed: target reached:
Index exceeded our Short term view TP at 26,420 before trading downwards.