All three timeframes suggest an advance may come to fruition
Dow Jones Industrial Average:
Pressured southbound by the prevailing risk-off mood, the Dow Jones Industrial Average concluded Monday’s segment down 1.49% open/close. Registering its second consecutive daily loss, weekly price recently crossed swords with support carved from 23578. Boasting reasonably sound historical significance, there’s a chance equities may stage a recovery from this point, targeting a possible retest of the 2018 yearly opening level at 24660.
Supporting the notion above, daily movement recently tested Quasimodo support at 23766 that merges with a trend line resistance-turned support (extended from the high 26670). This – coupled with weekly support – could be enough for a recovery play this week. In addition to this, H4 flow completed a nice-looking ABCD 127.2% bullish pattern yesterday at 23577, reinforced by a divergence/oversold reading out of the RSI indicator.
Areas of consideration:
According to our technical studies, all three timeframes suggest an advance may be in the offing, with an initial upside target positioned around H4 resistance at 24137/38.2% H4 Fibonacci resistance at 24103.
Entering long at current price with stop-loss orders positioned beneath yesterday’s low (23465) is certainly an option today. Note this offers more than 1:1 risk/reward ratio to the first upside target.
Today’s data points: US Building Permits and Housing Starts.
Pressured southbound by the prevailing risk-off mood, the Dow Jones Industrial Average concluded Monday’s segment down 1.49% open/close. Registering its second consecutive daily loss, weekly price recently crossed swords with support carved from 23578. Boasting reasonably sound historical significance, there’s a chance equities may stage a recovery from this point, targeting a possible retest of the 2018 yearly opening level at 24660.
Supporting the notion above, daily movement recently tested Quasimodo support at 23766 that merges with a trend line resistance-turned support (extended from the high 26670). This – coupled with weekly support – could be enough for a recovery play this week. In addition to this, H4 flow completed a nice-looking ABCD 127.2% bullish pattern yesterday at 23577, reinforced by a divergence/oversold reading out of the RSI indicator.
Areas of consideration:
According to our technical studies, all three timeframes suggest an advance may be in the offing, with an initial upside target positioned around H4 resistance at 24137/38.2% H4 Fibonacci resistance at 24103.
Entering long at current price with stop-loss orders positioned beneath yesterday’s low (23465) is certainly an option today. Note this offers more than 1:1 risk/reward ratio to the first upside target.
Today’s data points: US Building Permits and Housing Starts.
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