DJIA long-term broadening wedge
DJIA is rejected from the 27500 after correction within a long-term broadening wedge. We are within a channel with well-defined breakout levels for the extension higher and a downside reversal breakout lower. For the upside reversal from here, we need to see a price action continuation above 29000. Breakout downside reversal long-term will come upon a break below 20000. Near term, this rejection could lead to a pullback to 22500 and possibly 20000.
Get the powerful trading signals and analysis with the combination of Price Action and Elliott Wave!
On a daily chart, we can see that the instrument is already testing the significant downside resistance and has broken below the rising wedge marking 5 waves swing down correction over. Short trade entries are favored here with the stop loss above 25600 upon a break below 25000 which could come early next week. Our trading system is indicating a potential of 1000-2500 points of profit. Look for the short trade entries invalidation to come only on a clear daily close above 26300.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
