Dow Failed Bullish wedge and H&S

On the left we can see the Dow was making an inverse H&S on the daily chart, but as you know i always find these kind at these spots very unreliable. But as we all know, retail has been pumping the stock markets and is also probably a big cause to why it even got this high past 2 months. Anyway, Dow failed to push higher last week, making a double top at the 27200. But maybe even more important, it did a perfect retest at nr 1 two weeks ago, but then got the second rejection at 27200. Since then, it has been testing the neckline around 26400 for several days in a row. Normally, this means the inverse H&S will fail. Retests should normally not take too long because that doesn't show any conviction then.

On the right, you can see several support lines. Something i have shown past months with Bitcoin as well. Where all the potential bearish pattern got saved each time by these trend lines. Which is of course not uncommon during an uptrend. So, as long as we don't see a clear break of that line, the market could still turn up again. Think the max support is around 26200 now, at 26000ish there is another support which could still give some support to make the candle wick above the 26200.

On the left there is also a trend line it seems, don't know if it already broke or still hanging above it.

Big picture: think in case we drop to 25.000/24.500, good chance we see a bounce again, but i am quite sure that eventually we will drop withing a month or so. Since a right shoulder will likely be formed after touching that big support zone, but i assume it will just be a temp thing. Something like this:


So in other words, think bulls need to keep it above 25K, otherwise a very big chance that HUGE support zone around 24.5K/25K will most likely break and then should cause another big wave down.



Don't forget to like if you appreciate this :)


Previous analysis: