Last week, Dow Scenario1 rejection of 34605 short yielded 900pts (trail stop TP). With this rejection, DOW now exhibits rotation behavior 34605 - 32789.
Possible scenarios: 1) Rotational play: Trades can be executed at boundary of rotation range 34605 / 32789. - Long if supported at 32789 - Short if rejected at 34605 2) Rotational breakout/breakdown: - If price breakout, long when price retraces and finds support - If price breakdown, short when price retraces and is rejected
Volume Analysis: Weekly: Low vol wide spread S>D bar = weakness Daily: Ave vol up bar close at high = No demand H4: High vol up bar closed off high = minor weakness
Price reaction levels Short on Test and Reject | Long on Test and Accept
35750 35228 34416-34605 32789 30513 28635
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