The Dow Jones Industrial Average (DJI) is preparing for a huge drop, according to the chart above, let's take a quick look.
On the chart:
We can see that a new high was created on the 3rd October, which was quickly followed by a strong drop. Even though the Dow Jones created a new high, the MACD and RSI are going down, this is bearish divergence and a very strong one.
Last time we saw this type of divergence on the RSI was before the 2008 crash.
The RSI bearish divergence is also visible on the yearly time frame.
Yearly chart:
A strong drop is coming for the Dow Jones Industrial Average (DJI), you've been warned.
Note: This is no trade advice. This information is for educational and entertainment purposes only.
Thanks a lot for reading.
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We are dropping already. EMA50 (magenta line) worked as support.
- You can expect a little consolidation and then another drop.
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The coming weeks are going to be painful ones for DJI. More drop incoming:
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Our bearish view remains. More stocks and indexes are becoming more and more bearish.
Alan how do you think the DJI drop will affect the crypto market? I've red that this might cause a crypto drop as well, one because of previous statistics and second because crypto ain't a secure option for traders (too volatile)!
I'd like to hear your opinion ;-)
Best
Ar-
AlanSantana
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@ArsenB, Crypto holders are leaving crypto, so new money is always good regardless from where it comes.
It can affect the crypto market in a positive way if people flight from there.
jbevans02
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I absolutely like your method and it could very well happen. If it does happen, WRITE A BOOK! If it doesn't just make some tweaks to the Timeframes inputs. Either way, you are on to something good!