Overview: the Dow Jones is extending its correction once more.
Daily chart:
Unfortunately, the Dow was not able to follow up in its movement towards a continuation of the trend. The sellers are pushing the index even deeper back into the correction zone. Furthermore, the closing price below the 20 location point line suggests that the correction has not yet reached an end. What’s more, due to the issues with Greece, the new week is off to a very weak start.
Hourly chart:
Due to the breaking of the barrier at 17750 points, the upwards trend is finished. A new downtrend has been established and is now valid. The new week is beginning with a huge downwards gap, which will be closed at approx. 17790 points. The current correction zone of this downtrend lies between 17787 points and 17923 points. In addition, the 20 location point lines from the daily and the weekly chart meet above this point three, as well as the 200 line from the hourly chart itself. At this point at the latest, all of these factors should attract even more sellers into the market.
Even if it is just a correction from the perspective of the daily chart, for the time being, the short-term odds remain on the lower side. Trading possibilities will only arise once reversal signals in the direction of the downtrend can be discerned.
All the best
Markus Gabel
Head of Sales/Trading
AgenaTrader/TradeEscort
AgenaTrader Trading Software
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