The DOW, as you can see on the H4 chart, edged its way above the Quasimodo resistance at 22138 on Wednesday and has maintained a bullish footing. As highlighted in yesterday’s report, we believe this H4 barrier was the last remaining resistance stopping the index from achieving fresh record highs. So, with this line out of the picture and currently holding as a support, a long from here is high probability, in our opinion.
Suggestions: Keeping it nice and simply today, we’re going to watch how H4 action responds at 22138 given that it is now support. To become a buyer, a H4 bullish candle needs to be seen, preferably in the shape of a full, or near-full-bodied candle. The beautiful thing about this setup is that there is effectively no clear take-profit target, meaning that we could potentially join, what seems to be, the never-ending bull run.
Data points to consider: US Inflation figures and US Unemployment claims at 1.30pm GMT+1.
Levels to watch/live orders:
• Buys: 22138 region (waiting for a reasonably sized H4 bullish candle to form – preferably a full, or near-full-bodied candle – is advised, stop loss: ideally beyond the candle’s tail). • Sells: Flat (stop loss: N/A).
Seriously, incremental gains are certainly possible from here.
But I don't care. Order of magnitude losses are also
possible.