(Monthly chart is used)
The Dow Jones Industrial Average could be due for a major reversal soon because of the following reasons:
1) There is a triple top forming
2) RSI on the monthly chart is showing a severe loss in strength shown by 2 lower highs whilst price makes a triple top (aka bearish divergence).
3) MACD lines have crossed over indicating a reversal in the trend soon
4) MACD histogram has made lower highs as shown by the line on the chart
5) 5 waves can be counted and the final wave (5th of the 5th) is hitting the upper channel trendline which is a great place to enter a position to profit from down side price action.
6) There is a Fibonacci cluster at $26937 which is the point where (wave1*3.618) + the end of wave 2 is AND is where (wave 1 of 5)*1.618 + the end of wave 4 of 5 is.
7) During March a doji formed which shows indecision and shows that a reversal is coming soon.
Because of the above reasons, I believe that the DJI will reach its top very soon and revers so I will be buying put options soon.
This is not financial advice, just intended for educational and research purposes. You risk your capital your self and I am not liable for any losses you may incur.
The Dow Jones Industrial Average could be due for a major reversal soon because of the following reasons:
1) There is a triple top forming
2) RSI on the monthly chart is showing a severe loss in strength shown by 2 lower highs whilst price makes a triple top (aka bearish divergence).
3) MACD lines have crossed over indicating a reversal in the trend soon
4) MACD histogram has made lower highs as shown by the line on the chart
5) 5 waves can be counted and the final wave (5th of the 5th) is hitting the upper channel trendline which is a great place to enter a position to profit from down side price action.
6) There is a Fibonacci cluster at $26937 which is the point where (wave1*3.618) + the end of wave 2 is AND is where (wave 1 of 5)*1.618 + the end of wave 4 of 5 is.
7) During March a doji formed which shows indecision and shows that a reversal is coming soon.
Because of the above reasons, I believe that the DJI will reach its top very soon and revers so I will be buying put options soon.
This is not financial advice, just intended for educational and research purposes. You risk your capital your self and I am not liable for any losses you may incur.