DJIA is pulling back to test the upside rising wedge important support 39400. This should hold for an extension higher in the final short-term and long-term fifth wave. Big uptrend extension resistance is 41000 and a wedge resistance 41600. This should be a fifth-wave extension and an invalidation will come upon a break below 34800. Learn to Trade Futures profitably.
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The weekly DJIA chart reveals a test of the uptrend support 39400. At this point, buy positions have more probability of success as DJIA is still holding the medium-term support with higher lows formed. Overall support for the upside even if it breaks below 39400 is 37400 and the final long-term support for a bullish trend invalidation is 34600.
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As the famous trader says…
“Every trader has strengths and weakness. Some are good holders of winners, but may hold their losers a little too long”
Michael Marcus
How to trade this?
It is a fact that a strong upside resistance for Q3 2024 is 41600 and If we get a confirmed break above this level we could see a strong upside continuation in a fifth long-term upside Elliott Wave. Near-term, long-trade entries have a higher probability of success. Long trade entries can be placed here or a call option buying with a stop loss below 39200 with a first target of 41000 and if broken second target is 41800. The short-trade entry can be tried in the case of a break below 39200. For inquiries about account management please write to [email protected].
