Fractal777

Is This Dam Going To Break?

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CURRENCYCOM:US30   Dow Jones Industrial Average Index
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Yesterday the Dow formed a hanging man candle which suggested that buyers were tired.
No doubt there is weakness in this bull market as the legs begin to wobble.
The red trendline is our line in the sand....any solid close below!

If 33,000 breaks...an acceleration could occur.
So often when the markets top and the initial drop bounces, we get further selling and the "news" follows.

Like walking on eggshells in the dead of night.
Bulls have to be careful, a stop loss tsunami may trigger.

Again, buying puts is prudent....that pesky red line is the dam that holds back all.
Interesting timing in that precious metals are taking off...a huge cup and handle pattern has completed.

Good trading

Comments

Accurate
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Is that a hammer I don’t think a hang man has a wick 0r whatever you call it a line on top
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Fractal777 godson305
@godson305, 100% hanging man...a bearish reversal candle yesterday.

"What is a Hanging Man Candlestick? A hanging man candlestick occurs during an uptrend and warns that prices may start falling.
The candle is composed of a small real body, a long lower shadow, and little or no upper shadow.
The hanging man shows that selling interest is starting to increase".
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