Dow Jones - supply absorption to rally up till overbought?
Dow Jones futures (
YM1!
) edged up slightly in the London session today as President Donald Trump will issue guidelines for the re-opening economies.
15 Apr 2020 recap - on the daily chart, Dow Jones futures had a reaction with slightly increasing supply, which broke the previous day's low but demand was seen in the afternoon session to push the price up.
Similar to S&P 500 futures movement, Dow Jones futures coiled within the bearish rising wedge pattern and broke down an hour before the US session due to bad retails sales data.
Despite falling 2% yesterday, excessive supply is not seen and the uptrend from 23 March is still intact.
Since bottom in March, shortening of the thrust is seen in the Dow Jones futures, suggests the buying momentum is fading. However, as I mentioned, until there is evidence of increasing of supply to take the price down, we are likely to see Dow Jones to inch up further, possibly to around 25000 as illustrated. This also coincides with the overbought area of the rising wedge and the resistance zone.
Bias - bullish when Dow is above 22500–23000
Key levels - Resistance: 24000, 24800–25000 Support - 23000, 22500
Potential day trading setup for Dow Jones futures - look for a spring of 23000 or swing lows in H1(23200)to initiate a long entry.
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YM1!
) edged up slightly in the London session today as President Donald Trump will issue guidelines for the re-opening economies. 15 Apr 2020 recap - on the daily chart, Dow Jones futures had a reaction with slightly increasing supply, which broke the previous day's low but demand was seen in the afternoon session to push the price up.
Similar to S&P 500 futures movement, Dow Jones futures coiled within the bearish rising wedge pattern and broke down an hour before the US session due to bad retails sales data.
Despite falling 2% yesterday, excessive supply is not seen and the uptrend from 23 March is still intact.
Since bottom in March, shortening of the thrust is seen in the Dow Jones futures, suggests the buying momentum is fading. However, as I mentioned, until there is evidence of increasing of supply to take the price down, we are likely to see Dow Jones to inch up further, possibly to around 25000 as illustrated. This also coincides with the overbought area of the rising wedge and the resistance zone.
Bias - bullish when Dow is above 22500–23000
Key levels - Resistance: 24000, 24800–25000 Support - 23000, 22500
Potential day trading setup for Dow Jones futures - look for a spring of 23000 or swing lows in H1(23200)to initiate a long entry.
Enjoy this video? Like the idea and hover my picture to follow me and subscribe my channel to get instant notification for my next ideas.
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