Hello traders, we see a interesting formation in the weekly timeframe provided from the Dow Jones Industrial Average Index. Since January 2018 the index is trading in the range between 27000 and 21700 points. It fromed and interesting formation till now with an low at 21700 points. Looks like an inverted Head and Shoulders formation, the right shoulders could possibly complete within the next weeks. If we break through this upper resistance line which you can see in my chart, it would be possible that we get a good squeeze with momentum to the upside. For completion the upper resistance line should be confirmed with an pull-back. When we break thorugh and confirm the line i will open a long position there. Possible targets would be 32000 to 33000 points. Thank you for looking at my analysis, i would appreciate when you follow my profile for more excelent market reports. Have a nice day!
Interesting idea but IMO your wave labels are misplaced. Your wave 2 exceeds wave 1 so it's not impulsive; it's properly an expanded running correction.
The 1-2-3 should be an A-B-C zig-zag correction; the 4-5 is likely a 1-2 of a new bullish impulse entering wave 3 going ATH before the Crash.
Your basic premise that we might expect more bullishness is likely a good bet IMO. Ty for posting!
Tradetowin89
⋅
Could go either way e.g bearish trend reversal, FED meeting usually creates volatility and then direction will be confirmed Buy or Sell not a complete bullish move
The 1-2-3 should be an A-B-C zig-zag correction; the 4-5 is likely a 1-2 of a new bullish impulse entering wave 3 going ATH before the Crash.
Your basic premise that we might expect more bullishness is likely a good bet IMO. Ty for posting!