Is that it for the downside?
signs of a rally - the market found support at the bottom of it's trading range. And a
Caveat: it did pierce support so might be a warning sign.
Dow 2 hour chart
No break of down trend (yet)
Some positive divergence
Looks like 24750 could be touched and still be in down trend
A break above 24750 may be sign of bigger and longer rally - countertrend or nw bullish move
DOW daily chart
Clear hammer candlestick on the daily, which is a bullish reversal. Clearly shows the previous support (look left) being pierced.
Hammer candlestick can be bullish but:
"๐๐๐๐ก๐ ๐ฉ๐๐๐จ ๐ข๐๐ฎ ๐จ๐๐๐ข ๐๐ฃ๐ค๐ช๐๐ ๐ฉ๐ค ๐๐๐ฉ ๐ค๐ฃ, ๐๐๐ข๐ข๐๐ง๐จ ๐ง๐๐ฆ๐ช๐๐ง๐ ๐๐ช๐ง๐ฉ๐๐๐ง ๐๐ช๐ก๐ก๐๐จ๐ ๐๐ค๐ฃ๐๐๐ง๐ข๐๐ฉ๐๐ค๐ฃ. ๐๐๐ ๐ก๐ค๐ฌ ๐ค๐ ๐ฉ๐๐ ๐๐๐ข๐ข๐๐ง ๐จ๐๐ค๐ฌ๐จ ๐ฉ๐๐๐ฉ ๐ฅ๐ก๐๐ฃ๐ฉ๐ฎ ๐ค๐ ๐จ๐๐ก๐ก๐๐ง๐จ ๐ง๐๐ข๐๐๐ฃ. ๐๐ช๐ง๐ฉ๐๐๐ง ๐๐ช๐ฎ๐๐ฃ๐ ๐ฅ๐ง๐๐จ๐จ๐ช๐ง๐, ๐๐ฃ๐ ๐ฅ๐ง๐๐๐๐ง๐๐๐ก๐ฎ ๐ค๐ฃ ๐๐ญ๐ฅ๐๐ฃ๐๐๐ฃ๐ ๐ซ๐ค๐ก๐ช๐ข๐, ๐๐จ ๐ฃ๐๐๐๐๐ ๐๐๐๐ค๐ง๐ ๐๐๐ฉ๐๐ฃ๐. ๐๐ช๐๐ ๐๐ค๐ฃ๐๐๐ง๐ข๐๐ฉ๐๐ค๐ฃ ๐๐ค๐ช๐ก๐ ๐๐ค๐ข๐ ๐๐ง๐ค๐ข ๐ ๐๐๐ฅ ๐ช๐ฅ ๐ค๐ง ๐ก๐ค๐ฃ๐ ๐ฌ๐๐๐ฉ๐ ๐๐๐ฃ๐๐ก๐๐จ๐ฉ๐๐๐ "
So tomorrow should see follow through to the upside to confirm and volume should increase.
If this fails to happen, likelihood increases of sharp move down to previously mentioned levels 22k Dow.
Also this is happening after -10% correction in last 10 weeks, which usually works as a bottom in normal bull markets. (like last time it was in April this year, which lasted for 6 months!!!) But the question is IS this still normal bull market like then or already topped bull market and changing to something else like more serious correction. We will see.
ReplyDeleteYes, whatever happens the market psychology has changed, more volatility which is good for trading, as long as one cab ride the waves and not get caught by them
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