Technical analysis for Dow Jones, for October 29, 2015
Posted by FXTimes in Featured - October 29th, 2015 5:57 am GMT
A Daily chart (of Dow Mini Futures) view has been presented here to understand the complete wave count. Please note that the indice has broken a Multi Year Support trend line while dropping from 18300 levels to sub 15000 levels in August 2015.
The rally since then has been an A-B-C correction till now, or just a counter trend. Believe it or not, the Dow could be at a major infliction point here since it is testing 2 trend lines here: 1. The back side of the support trend line which is resistance now, 2. Resistance line from 18,300 levels. A bearish reversal here (17600-700 levels) could see the Dow tumbling over sharply, way below 15,000 levels. Immediate resistance is seen around 18.000/100 levels, followed by 18200/300, while support is seen at 17,500 and lower respectively.
Initiate short positions with risk at 18300 levels.