Previous analysis it was given to hold as Dow was on cross road of uptrend channel's and lower high trend line resistance. Yesterday after spending 30 min near resistance it gave up 200 points. Dow had respected the cross road resistance.Now from here keeping yesterdays high as SL, one can short Dow. Support could come at triangle " B " where 0.382 fibonacci level is placed @ 31100. The reason for going short with 200 points SL is
1 Any given stock / index always trade in line of support and resistance and in this process Geometrical shapes are formed. Father of stock market Mr Wilbert D Gaan have heavely relied on geometrical pattern.
2 If we see after yesterday's fall it seems Dow is on way completing triangle "B" which is 1/2 of triangle A+B. Triangle "A"being lower part and B being upper part. Lower part is complete and upper part is under construction.
3 It can be seen that after 700 point rise and 200 point fall this triangle B started looking incomplete, which will be complete at Point H.
4 but before it we have fibonacci support of 0.382 level @ 31100 and then on upward journey at 0.500 fibonacci level @31700
5 This a Analysis will be void if Dow starts trading above lower high trend line.
1 Any given stock / index always trade in line of support and resistance and in this process Geometrical shapes are formed. Father of stock market Mr Wilbert D Gaan have heavely relied on geometrical pattern.
2 If we see after yesterday's fall it seems Dow is on way completing triangle "B" which is 1/2 of triangle A+B. Triangle "A"being lower part and B being upper part. Lower part is complete and upper part is under construction.
3 It can be seen that after 700 point rise and 200 point fall this triangle B started looking incomplete, which will be complete at Point H.
4 but before it we have fibonacci support of 0.382 level @ 31100 and then on upward journey at 0.500 fibonacci level @31700
5 This a Analysis will be void if Dow starts trading above lower high trend line.
