Dow Jones ready to resume lower below 18000 as Wave (3) unfolds
Dow Jones might be ready to resume Wave (3) lower towards 18000 levels from current price (24165) or 25000/200 handle. The Dow is lagging behind SPX500 which touched resistance at 2954 on April 30, 2020. It would have been ideal if Dow Jones hit 25000/200 before reversing lower but nonetheless be prepared to watch a swift reversal soon. The indice had dropped between 29600 and 18200 levels unfolding in 5 waves, Wave (1) on chart. The counter trend rally lasted for over 4 weeks unfolding as a zigzag towards 24897 handle, potential Wave (2). If the above counts are correct, we should witness Wave (3) lower below 18000 handle, going forward. Alternately, the indice may print yet another lower high around 25000/200 levels before terminating Wave (2) and resuming Wave (3). Either way, a bearish reversal seems to be imminent.
Strategy:
Short against 27200, (ideally 29600), 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, (ideally 29600), 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.