DJIA is being rejected by the long-term channel top and has reached in five waves 40350 level. It means we are at the end of the five waves higher long and short-term and it has been reached in sharp rising wedges. A rejection here and a break below 36800 will open a strong pullback and a test of the most important support 35000. Learn to Trade Indices profitably.
How to trade this?
It is a fact that a strong upside resistance for Q3 2024 is 43500 If we get a confirmed break here we could see a strong upside continuation and new highs. Near-term, short-trade entries have a higher probability of success. Long trade entries are possible only on a confirmed price-action break above 43500. You can try a short trade here with a stop loss above 39600. The short-trade entry has a better Risk to reward. For inquiries about account management please write to [email protected].
The Weekly DJIA chart reveals an addition to the previously mentioned important wedge breakout looming. As the long-term charts imply, at this point look for the short trade entries or sell positions building upon a break below 39600 as they have a higher probability of success. We will need to see a big break above 40350 to see an extension higher, an invalidation of the complete downside reversal, and an end of the five long-term waves.
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As the famous trader says…
“In this business, if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten.”Peter Lynch
How to trade this?
It is a fact that a strong upside resistance for Q3 2024 is 43500 If we get a confirmed break here we could see a strong upside continuation and new highs. Near-term, short-trade entries have a higher probability of success. Long trade entries are possible only on a confirmed price-action break above 43500. You can try a short trade here with a stop loss above 39600. The short-trade entry has a better Risk to reward. For inquiries about account management please write to [email protected].