Dow towards 25500/600 before correcting lower!

Nov 29, 2018

The Dow Jones pushes above 24800 levels, confirming that 25500/600 could be the next resistance to be taken out! We discussed the probability for the indice to reverse sharply higher if 24100 levels hold, last week and a safe strategy could be to take profits on the shorts taken earlier, awaiting for opportunities to sell higher again. Now, we see Dow trading comfortably above 25300 levels at this point in writing and it gives more confidence in the short term bullish setup towards 25600 and probably 26300 levels. Looking into the wave structure, a corrective wave (2) could have terminated at 26300 levels or it is unfolding as 3-3-5 flat and might retest 26300 levels, before reversing sharply lower towards wave (3). A safe trading strategy could be to look for opportunities to sell higher between 25600 and 26300 levels, going forward. Overall, out medium term outlook for Dow remains bearish/sell on rallies until prices stay below 26950 levels.


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