Dow Jones Mini Futures Technical Analysis for November 20, 2015
Posted by FXTimes in Featured - November 20th, 2015 6:49 am GMT
The 4H chart presented here again is indicating that Dow has stalled at a fibonacci 0.786 resistance ( of the recent drop from 17,900 to 17,050 levels ) around 17,720/30. Moreover, the indice has produced an engulfing bearish candlestick pattern, indicating a potential change in the direction. Also note that immediate resistance at 17,800 levels remains intact and prices are stalling just ahead of that. Keeping into all the above in mind, high probability remains for the Dow to change directions from here (towards south) and extending the drop to at least 16,700 levels if not lower. Immediate resistance is seen at 17,800 levels, followed by 17,900 and higher while support is seen through 17,430 levels and lower. Please note that the RSI has been stalling at 70 levels and is just about turning south, which favours the bearish stance.
Remain short, stop at 18200, target 16700 at least.