US30 THE DOW 30 CRASH, ONE YEAR LATER UPDATE
Last year May we saw a potential crash for the Dow Jones 30 due to inflation fears
and now what we predicted is finally happening.
In our analysis a year ago Dow 30 was trading at 34,644 after reaching highs of 35100
we saw a potential sell signal on the 1W chart which was the formation of a bearish harmonic.
this halted our longs and swings on the Dow.
So what is Fueling the Dows Crash at the moment?
Same thing which was fueling it about a year ago, inflation fears in the US.
US investors have lost their trust in the Fed's ability to control inflation even
with the current 75 basis points interest hike we saw this week during the FOMC on Wednesday
to try and curb inflation, investors believe that the Feds tools have failed. Recent data has shown
that inflation is now at its highest in the last 40 years in the US and analysts have predicted
a decline in US GDP in the next coming years
meaning the US could be facing a recession or is already in one.
WHAT TO EXPECT
Currently @ 29,900
Next support for Dow 30 is 29,500 so we expect it to reach this support level before short term
retracement back to +30,000
Looking at the Covid Crash we expect Dow 30 to fall at least 10,000 points from its highs which were at 36,400 meaning
We expect Dow 30 to reach 26,000 before any reversals,
Our initial target from a year ago was 23,500 and we still think this might be a possibility.
Our positions
Active sell positions @ 31,600 & 31,300 from our last analysis link is attached below
New positions
Sell Limit @ 31,000 TP @ 30,000
Sell Stop @ 29,000 TP @ 28,000
Sell Stop @ 28,000 TP @ 27,000
Buy Stop @ 30,100 TP @ 30,600
Buy limit @ 29,500 TP @ 30,000
Buy limit @ 26,800 TP @ 28,000
Buy limit @ 23,700 TP @ 33,000
Note these are low risk entries
link to previous analysis attached below
Note: this is just an analysis based on technical analysis & current events. All investments involve risk, our analysis and trading strategy does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make.
and now what we predicted is finally happening.
In our analysis a year ago Dow 30 was trading at 34,644 after reaching highs of 35100
we saw a potential sell signal on the 1W chart which was the formation of a bearish harmonic.
this halted our longs and swings on the Dow.
So what is Fueling the Dows Crash at the moment?
Same thing which was fueling it about a year ago, inflation fears in the US.
US investors have lost their trust in the Fed's ability to control inflation even
with the current 75 basis points interest hike we saw this week during the FOMC on Wednesday
to try and curb inflation, investors believe that the Feds tools have failed. Recent data has shown
that inflation is now at its highest in the last 40 years in the US and analysts have predicted
a decline in US GDP in the next coming years
meaning the US could be facing a recession or is already in one.
WHAT TO EXPECT
Currently @ 29,900
Next support for Dow 30 is 29,500 so we expect it to reach this support level before short term
retracement back to +30,000
Looking at the Covid Crash we expect Dow 30 to fall at least 10,000 points from its highs which were at 36,400 meaning
We expect Dow 30 to reach 26,000 before any reversals,
Our initial target from a year ago was 23,500 and we still think this might be a possibility.
Our positions
Active sell positions @ 31,600 & 31,300 from our last analysis link is attached below
New positions
Sell Limit @ 31,000 TP @ 30,000
Sell Stop @ 29,000 TP @ 28,000
Sell Stop @ 28,000 TP @ 27,000
Buy Stop @ 30,100 TP @ 30,600
Buy limit @ 29,500 TP @ 30,000
Buy limit @ 26,800 TP @ 28,000
Buy limit @ 23,700 TP @ 33,000
Note these are low risk entries
link to previous analysis attached below
Note: this is just an analysis based on technical analysis & current events. All investments involve risk, our analysis and trading strategy does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make.
