DOW JONES - TRIANGLE AT RESISTANCE - EXPECTING SELL OFFSymbol - 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.
Djiashort
US markets taking a pause?The price action formation on the SPX seems to be indicating that the market in the US could be taking a pause for now. Price had pulled back from all time highs recently, but now is seeing rejection from the 20EMA. If this trend continues we could see price correcting to the longer term trendline and then the 200EMA on the daily chart. A short position can be initiated keeping the following levels in mind.
SHORT BELOW : 4346
STOP LOSS : 4420
TARGET 1 : 4272
TARGET 2 : 4198
_____________________________________________________________________________________________________________________________________________________
A similar formation is also evident on DJIA, indicating that this could be a market wide pause, something which could lead to a short term correction.
If this scenario sustains, we could see this bearishness spill over to the Indian markets as well.
_____________________________________________________________________________________________________________________________________________________
Manage risk properly and trade you plan.
Like and follow for more. :)
WILL DOW CHANGE ITS UPWARD TREND TODAY !!!COMPARING MY LAST STATEMENTS WITH THE ACTUAL MOVE ON 18-5-20
1. In point no3. of previous post regarding movement of dow I talked about down side movement from monday onwards. In point no.4. I gave the condition of positional short trade if it gets fullfilled only shorts can be initated . But unfourtunately it did not complete my condition of taking short. Therefore, no trade can be executed on short side on monday trading session. As you can see in fig. that dow open gap up exactly on the upper end of red dotted band of zone. I also mentioned If swing high is breached then shorts sentiments will convert into longs. You can see that with such bullish sentiments dow could not breach Z point swing high.
2. Therefore , chances of going down are still present. If on opening gap up from that point then long will prevail. On the other hand if gap down open then one should wait for dow to short breaching dotted red zone lower band.
3. What I feel is dow tested upper swing to give flase bullish impression. That would be confrimed in fist trading hour. Rest market will decide.
YOGESH VATS