DOW JONES Consolidation leading to a Christmas rally?
Dow Jones / US30 spent all week above the 1day MA50, in fact Friday's rebound took place exactly on it (Support A at 33850).
This is potentially an Inverse Head and Shoulders pattern and with the 1day RSI at 60.00 and over its MA, it draws comparisons with the June 15th pattern, which peaked at +6.08%.
That pattern has same measurements as the current Inverse Head and Shoulders and formed the Right Shoulder in 3 weeks, supported by the 1day MA50.
After that another +6.15% leg brought the price to the 1.786 Fibonacci extension.
Similarly, the current Inverse Head and Shoulders may target the 1.786 Fibonacci, which in this case will be a little under the 35700 Resistance B high.
Buy and target 35500 (a little under Fibonacci 1.786).
Previous chart:
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This is potentially an Inverse Head and Shoulders pattern and with the 1day RSI at 60.00 and over its MA, it draws comparisons with the June 15th pattern, which peaked at +6.08%.
That pattern has same measurements as the current Inverse Head and Shoulders and formed the Right Shoulder in 3 weeks, supported by the 1day MA50.
After that another +6.15% leg brought the price to the 1.786 Fibonacci extension.
Similarly, the current Inverse Head and Shoulders may target the 1.786 Fibonacci, which in this case will be a little under the 35700 Resistance B high.
Buy and target 35500 (a little under Fibonacci 1.786).
Previous chart:
Follow us, like the idea and leave a comment below!!
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