Dow Mini Futures, Technical Analysis for November 26
Posted by FXTimes in Featured - November 26th, 2015 4:04 am GMT
A daily chart vi has been again presented to look into slightly bigger picture and possible wave counts. Firstly, the Dow had broken below its Multi year support trend line in August 2015. The rally from then (mid 15000 levels) has been corrective till now (3 waves). Furthermore, prices have stalled at the back side of the support turned resistance line around 17900 levels. Immediate resistance also lies around the 18100 mark and till the time it stays intact, there is no reason to change the above count. If all the above holds true, the Dow is expected to drop in a big way from here. On the other hand, a break above 18000/100 levels, would probably confirm that bulls are back into action and buying on dips could be a preferred trade strategy. Immediate short term support is seen at 17650 levels, followed by 17000 levels. The RSI is trading just below 70 levels, so at least a pullback can be expected.
Holding short positions, stop at 18100, target is open.