DJIA is being rejected from strong resistance 40350. This is also a long-term upside channel and it’s possibly the fifth of the five upside waves. A confirmed breakout above this level is required for a continuation higher and another extension. Learn to Trade Indices profitably.
The Weekly DJIA chart reveals a consolidation triangle that could not be bearish and could be a bullish continuation triangle. At this point, both sell and buy positions are possible as the Index is still in the strong uptrend but a break below 38200 will lead to a pullback. We will need to see a bounce here and a break above 40000 to see an extension of the fifth long-term wave higher. Overall support for the upside stays at 35400.
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As the famous trader says…
“Hope is bogus emotion that only costs you money.”
Jim Cramer
How to trade this?
It is a fact that a strong upside resistance for Q3 2024 is 40350 and If we get a confirmed break above this level we could see a strong upside continuation and new highs. Near-term, long-trade entries have a higher probability of success. Long trade entries are possible only on a confirmed price-action break above 39300 with a narrow stop loss. The short-trade entry can be tried in the case of a break below 37900. For inquiries about account management please write to [email protected].
