Overview: The Dow Jones can stabilize itself in the correction zone.
Daily chart:
The Dow Jones has plunged deep into its correction zone, but was, however, able to stabilize itself over the past two days, and just yesterday, it showed a strong trading day. Now, the two location points (20-SMA) from the week and the day are still opposing a new movement. If these points can be overcome, there is not much more standing in the way of a continuation of the trend.
Hourly chart:
Thanks to yesterday’s strong trading day, the red downtrend was overcome. However, a new uptrend has not yet developed; for this to happen, a clearer correction and a new upwards movement are still needed. Looking at the big picture, this means that it is still too early for an entry.
Intraday:
Here we can see a new uptrend, which in itself is on the move. But since the big picture is not yet providing any support, we do not currently have any trading opportunities so long as we are applying the Dow theory as our trading approach. For the moment, therefore, patience is required.
Best greetings
Markus Gabel
Head of Sales/Trading
AgenaTrader Trading Software
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