sumastardon
Short

Dow fighting itself in the gap - break imminent

TVC:DJI   Dow Jones Industrial Average Index
49 views
8
49 0
A mixed bag, so far, in that some indices have broken down and some haven't - Dax and Nikkei on key supports at the intraday lows of today. If either are broken by 10 points or more they are worth shorting.
The Nasdaq is holding up on key support, chart to follow, but the Dow and Sand P still look to have quite a lot further to fall.

With markets on heightened alert for first time in months we can expect more volatility in the short term with markets whipsawing between blue horizontal supports and resistance lines on the charts.

With the threat of whipsaw in the air it's prudent to break the moves down as best we can...

I believe that the best points to look for potential short term support - and therefore a brief bounce before the decline resumes - are at the gap points on the chart. And you can see that's where the index is resting now - at the top of the original breakaway gap shown on the Last Dow chart sent out. The blue horizontal lines on this chart show where the gaps are, as well as old highs and supports, where they look relevant to the downtrend.

Of particular interest is the point where the ascending blue trend line intersects the horizontal support lines at 20319-20295. This will become the next downside target if minor support at the gap/ current values gives way, which I believe it will soon.


If 20620 gives way its a short...it's right in that level as this is written.
When it breaks it should come back to 20535 and then after a brief bounce back to the next gap at 20319-20293.

Amazing...it's still holding up right on the level at 20620...if/when it breaks by 10 points it's worth shorting again, and doing the same with FTSE and Sand P depending on risk appetite.

Right now the Dow is fighting itself inside the gap...don't short unless/until we see that break below 20620
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing House Rules Moderators Website & Broker Solutions Widgets Charting Solutions Get Help Feature Request Blog & News FAQ Wiki Twitter
Profile Profile Settings Account and Billing Get Help Ideas Published Followers Following Private Messages Chat Sign Out