Multiple relevant support levels converges, which can push Dow back up into the trend channel:
1) 24800-25100 support area holds with two intraday rejection on Friday;
2) 4-hour chart (shown here) and daily chart (not shown here) closed above uptrend channel lower band around 25200;
3) Fibo swing retracement using May 14's swing low and Jun 9's swing high show a 50% support around 25200.
Possible trading plan:
1) wait for breakout confirmation of resistance area 25700-800 (both Fibo 61.8% and a previously tested resistance); long with target 26600 and stop just below resistance area;
2) wait for a retest of uptrend channel lower band and long with same target and stop 1ATR below trendline;
If resistance area held again (long thesis nullfied near term), Dow might consolidate within 25800-24800 range and trade accordingly; look for buildup near either side for breakout.
From fundamental standpoint, US second-wave COVID infections is a developing story, but 4hour and above chart should help filter out noises from headlines. Watch for Dow-NASDAQ divergence as well.
First post...discussions and advice welcomed.
1) 24800-25100 support area holds with two intraday rejection on Friday;
2) 4-hour chart (shown here) and daily chart (not shown here) closed above uptrend channel lower band around 25200;
3) Fibo swing retracement using May 14's swing low and Jun 9's swing high show a 50% support around 25200.
Possible trading plan:
1) wait for breakout confirmation of resistance area 25700-800 (both Fibo 61.8% and a previously tested resistance); long with target 26600 and stop just below resistance area;
2) wait for a retest of uptrend channel lower band and long with same target and stop 1ATR below trendline;
If resistance area held again (long thesis nullfied near term), Dow might consolidate within 25800-24800 range and trade accordingly; look for buildup near either side for breakout.
From fundamental standpoint, US second-wave COVID infections is a developing story, but 4hour and above chart should help filter out noises from headlines. Watch for Dow-NASDAQ divergence as well.
First post...discussions and advice welcomed.
Trade closed: target reached:
Target reached on Tuesday US morning session (hell of a ride...). Right now it looks like a symmetrical triangle forming on the 60min chart and I'd wait for breakout to each side and trade relevant support/resistance on that side...good luck