InvestingScope
Short

Dow Jones: Sell opportunity. Potential Double Top.

DJCFD:DJI   Dow Jones Industrial Average Index
DJI has extended the 1W Channel Up ( RSI = 65.157, MACD = 519.030, Highs/Lows = 742.8189) that has previously provided a handful of trading opportunities (see bottom of the analysis).

At the moment a Double Top is being formed on 1D, which since April has been a bearish signal, later initiating a decline towards the Higher Low zone (where the 1D MA200 always supported).

We are expecting a similar behavior especially since the current levels are nearly overbought on 1D ( RSI = 69.814). Our Target Zone is 27,000 - 26,800.


See the previous successful signals within this pattern below:









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Well, as surprising as the bullishness has been on Friday 12/6, notably the 5m volumes all day have been alternating between bull/bear and resisitance at the secondary top does suggest prices may have peaked again at the same level. Looks like distribution ongoing, imo in fact, behind the scenes. I'm holding half my bear spreads, and closed out partial position to realize significant gains on the short legs, of >80% in some contracts. Added VIX calls May $20 strikes and more VIXY, UVXY. These don' expire so you get to just hold them until they realize improvement! You can write calls on them while u wait, and I am; but look uot for VIXY calls' thin liquidity and wide MM spreads.
Good weekend to all!
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Im fairly confident this latest downtrend move is not over yet... taking form of an ABC. This is B... topping.
+1 Reply
InvestingScope DaddySawbucks
@DaddySawbucks, Indeed that can very well be a B topping.
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DaddySawbucks InvestingScope
@InvestingScope, LOL now its an irregular expanded flat; or maybe just... bullish?! FGS!!
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Thank god my Tvix buy position was about to be risk managed . Love to see the table turn on these all time high vix shorters
+1 Reply
InvestingScope shadow_broker
@shadow_broker, Good call that was inevitable.
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