Dow Jones slips after testing recent swing highs around 24400/500 levels on May 11, 2020. Dow Futures are trading close to 23000 handle, extremely close to initial support at 22917. High probability remains that the indice has carved a meaningful lower top around 24897 on April 30 and prices could be heading towards 18000 levels, going forward. Having said that, we would still be prepared for a potential surprise rally towards 25000/200 handle before turning bearish. Either way, Dow remains a candidate to sell on rallies from here on. Structurally, Dow Jones had earlier dropped from 29600 through 18200 in 5 waves, Wave (1) on the chart. The corrective rally towards 24897 is marked as potential Wave (2). If the above counts hold, Wave (3) is already underway towards 18000 and lower. Immediate price resistance comes in around 27000 handle and is good to have stops above that.
Strategy:
Short against 27200, targeting below 18000.
Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.
Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.
Strategy:
Short against 27200, targeting below 18000.
Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.
Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.