DOW JONES - TRIANGLE AT RESISTANCE - EXPECTING SELL OFF

Feb 12

Symbol - DJI

CMP - 44593

The Dow Jones Industrial Average is currently trading within a symmetrical triangle pattern, indicating a period of consolidation. This technical structure suggests that the price is experiencing a balance between buyers and sellers, with no clear directional bias in the immediate short term. The breakout of this triangle, whether upwards or downwards, will likely determine the next significant move in the market. At present, my personal bias is towards the downside, anticipating a potential bearish breakout.

Currently, the key resistance zone for the Dow Jones lies between 44900 - 45100. This range is proving to be a formidable barrier for upward price movement. Until this zone is decisively broken to the upside, the continuation of the bullish trend appears unlikely. The market is facing significant resistance, and it seems that for any sustained bullish momentum, a strong move above this level is required.

If the triangle pattern breaks downwards, it could signal a correction that may lead the price to form a double top pattern on the larger time frame. A double top is a classic bearish reversal pattern, and its formation would likely confirm a shift from the prevailing bullish trend to a more bearish outlook. In this scenario, traders should be cautious of further downside risks, especially if the price breaks key support levels.

However, if the price manages to break above the resistance zone of 45100 and sustains that move, the bullish trend would likely continue, and any short positions would be invalidated. A breakout above this key resistance would indicate a strong continuation of the uptrend, signaling that the market is poised for further gains.

Feb 15

Trade active

DJI continues to trade sideways and is in a state of consolidation.

Feb 22

Trade closed: target reached

Trade plan worked perfectly as anticipated. Dow jones witnessed strong sell-off & made low of 43,349

Target reached.
+1250 points in profit.

Feb 23

Note

Classical double top formation in place as I discussed earlier in my trading idea.

Feb 26

Note

Bearish flag formation. Activation & realization may push the price to 42900 - 42800 area.

Mar 4

Note

CMP 42900

Very close to second target of 42800

Mar 4

Note

CMP 42500

All targets reached.
2000+ points fall from my short level.

Mar 11

Note

CMP 41700 now.
Falling non-stop.