*A very strong Resistance @ 21200 which made a strong reverse pull candlestick to touch previous day close even surpassing the gap. *A well suited ABCD pattern which is supporting our decision.
Dow Jones (DJI) weekly chart study - Megaphone (Broadening top)
Support band is between 20887.2 to 22499.8
Chevron Corporation: The move up in the last couple of sessions seems to be a corrective pullback. The RSI is now at the bearish extreme zone, the candles are forming bearish patterns. The prices have also closed below the KS & TS lines. The trend down is expected to continue. A close below 115.5 will confirm the trend.
DJI will probably take one of these two routes - Curve A or Curve B. Comment what you think looks probable. The three trend lines extend from Feb 2013
1) Dow Jones Industrial Average is still above its 50 week EMA. 2) It has formed a double top with a bearish divergence on RSI and Stochastic oscillator. 3) An ascending triangle formation is possible is the lower trendline is not violated.
After Long Consolidation Dow Jones has given a breakout of its daily and weekly trendline. Short Term target 26000.
Short below the red line for a 1000 point downmove. Go long above the green for a 1000 point upmove. In today's age of advanced technical drawings and analysis. I have decided to stick to the absolute basics. Will keep posting such charts for reference.