The question is not if it's going to drop that hard, the question is if it's gonna honor the fibs and provide a good entry. When it hits the fan, don't say you weren't warned.
Could go either way but longs shld b cautious
Pullback was contained to the weekly R1 backtest before another move up, finishing the week a whisker away from target zone. As trade has progressed, R/R is now firmly in the profit taking area instead of squeezing every point out. Dow is showing to be the weakest index with NQ at ATH and ES matching the June high. QT next week.
Can the DJIA hold and close + 25,000 ? That depends on the amount of manipulation Lately some one has been making sure that these markets close higher on Friday ! The game will continue till it can't....
Good rally up so far, may need a pull back to consolidate before further gains. Be aware QT happens next week which has caused weakness over the second half of the last few months. Above weekly and monthly pivot= bullish. Target remains the same. Scale out some profit and move stops up below monthly pivot.
These two both look to have some bullish life in them. The DAX and the US indices also seem to have some life, but these are my favourite picks. On the other hand the Shanghai Composite SHCOMP still looks dire. Here is the DOW:
Diamond formation stretched out to end of last week then broke upwards, closing above the weekly pivot and it will currently open above the monthly pivot. Weekly bullish reversal elected (just) on the close after 3 weeks of electing bearish reversals. Looking for confirmation of the bottoming pattern, which now looks like a rounded bottom or cup and handle if it...
US30 good resistance here consider shorts until US opens for retrace
DOW - Long term UpTrend intact (Weekly chart).
If you remember my best guess 1 it dropped less than I expected to the 50 % correction level, then bounced to a newer short term high only to drop to lower short term low (see link below): a trap of sorts. I favor this is just a form of tricky correction the EWT folks call a irregular flat. And today it stopped at about the .62% level which is common. IF. This...
Diamond pattern nearing completion. A break in price down could mean a half staff pattern, with the second leg the same length of the first. Yearly and monthly pivots below provide strong support and price target at 23100 area. Break up could be a price trend reversal to the monthly R1 at 25100.
Either we break this wedge after another test of the top and back down or we have nice quick flash crash to 230s at 200ema. Most likely more sideways action and volatility until August. The latter is unrealistic but you never know.
Looking at this weekly chart, we can clearly see that DJIA is moving in the intermediate Wave C. This Wave C is the final component of a larger primary Wave 4, which could bottom out at approximately 23000. 23000 is the 1.618 extension of the bottom of DJI's long term ascending channel, therefore opening long positions there should be very safe and profitable....