Weekly chart:
Once again, the markets have lured the buyers into their trap. The strong weekly candle from the previous week was completely equalized this past week, and even undercut. At the moment, the Dow is still located in the current uptrend’s correction zone. It is now also likely that the lower limit of the correction zone and the monthly 20 LP passing through there will be tested.
Daily chart:
The downtrend remains intact and is now about to break through the last point two at 17381 points. If this breakthrough occurs, the likelihood increases that it will go directly for the 20 LP from the month. This means that we are presented with a very good chance to go short here.
Hourly chart:
Here we can see an intact downtrend whose last correction zone is represented by the blue rectangle. A return back to there would be technically healthy and would offer new short chances. Due to the current selling pressure, however, a direct continuation of the downtrend should be expected. At the moment, the chances are more on the lower side.
All the best
Markus Gabel
Head of Sales/Trading
AgenaTrader/TradeEscort
AgenaTrader Trading Software
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