Dow Jones has reversed sharply since 27600/700 highs recently and is seen to be trading close to 26400 handle as we publish this article. In continuation to our calling for a potential bearish reversal since last several trading sessions, the indice seems to have finally turned lower. We are not ruling out yet another shallow high above 27600/700 before giving in to bears though. A break below 25000 would confirm that a meaningful top is in place and that Dow Jones has turned lower towards 18200 over the next several weeks. Believe it or not, even if a new high is print above 27700 handle, it would call for a sharp reversal. Dow Jones remains a sell on rally, until prices stay below 29600. It has carved a classic Elliott Wave pattern 5-3 since 29600 and ideally, we should see another 5 waves lower as Wave (3) unfolds.
Strategy:
Aggressively short against 29600, targeting below 18200
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:
Aggressively short against 29600, targeting below 18200
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.