Dow Jones - Pivotal moment for the bulls and bears!

3月22日

The Dow Jones Industrial Average is currently approaching a critical juncture, as it risks breaking below and staying under the neckline of a potential double top pattern. A double top formation is typically a bearish signal, indicating a potential trend reversal after the price tests a key resistance level twice, failing to break higher. The neckline, which forms the base of this pattern, is the level that traders will be watching closely to determine the strength of this bearish signal.

If the Dow breaks below and stays under the neckline, it could trigger further downside momentum as liquidity is swept from the market. However, it's essential to note that this initial breakdown could just be a "liquidity sweep," a move designed to trigger stop-loss orders and shake out weaker hands. For the Dow to maintain its bullish potential, it must quickly recover and hold above the neckline after this sweep. If it can do so, the market may find stability and begin to look for higher prices again, as the double top formation would then be invalidated, and a more bullish outlook could emerge.

In summary, while the Dow Jones is at a pivotal moment, the key to higher prices will be whether it can hold above the neckline after sweeping liquidity. A failure to do so could signal further downside, but a strong recovery above the neckline would leave the door open for a potential rally.

For now the Dow jones swept the liquidity under the neckline. However, it needs a quick recovery to maintain and find support on the neckline again. The risk that it now faces is the resistance of the 50, 100 and 200-day MA. Staying above the neckline and reclaiming these MA could be a massive bullish signal on the Dow Jones.

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3月26日

交易進行

The Dow Jones reclaimed it's supportlevel. It took the downside liquidity and now it could see higher prices.

4月7日

交易結束：目標達成

Dow jones wasn't able to hold the neckline and broke down with high volume