On the daily chart Dow couldnt make new highs. The market created a clear head and shoulder pattern with the break of the neckline that also broke the uptrending channel. We can expect the price to reach the lower daily structure for a retracement move. ––––– Follow the Shrimp 🦐
Here is the Plancton0618 technical analysis, please comment below if you have any question. The ENTRY in the market will be taken only if the condition of Plancton0618 strategy will trigger.
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Price moving to the next daily support. As expected
I agree completely that it is a head and shoulders pattern and a short position is best. You drew a baseline around 26,400 and I agree it will probably find some support there, but only temporarily.
I view the July 15 through July 30th as more of a negative sloping baseline then a flat baseline as you draw it. The market has approx. another 15% drop from Friday before it lines up again with the negative sloping baseline. I think we have a lot further down to go then the 26,400 support line. It will probably drop even further below the negative sloping baseline, but I would consider the market oversold at that point. Great chart & analysis though.
InkyGrip
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@happykxu74, Thanks for sharing your vision! Feel free to post your chart here if you like
happykxu74
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@plancton0618, I created the below snapshot link so you can see my thoughts. Essentially, the negative sloping trendline from July 15 - July 30th will cross a baseline in late October around 23,543. That is only 12.5% from today's figure though, my mistake for mentioning 15% above. The market will drop below both baselines at that point and be oversold, this is the minimum amount that the stock market will fall.
Again, I think it will fall further from that, but by Mid-November I think we will have hit a bottom. Thanks!
InkyGrip
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@happykxu74, Appreciate your thoughts, thanks mate!
I view the July 15 through July 30th as more of a negative sloping baseline then a flat baseline as you draw it. The market has approx. another 15% drop from Friday before it lines up again with the negative sloping baseline. I think we have a lot further down to go then the 26,400 support line. It will probably drop even further below the negative sloping baseline, but I would consider the market oversold at that point. Great chart & analysis though.