Dow Futures: Weekly Price Action & Technical Analysis as on 2-OCT-2016

The Dow Futures closed the Quarterly bar with a wide wick above. The Monthly bar closed as a LH LL bar, in the middle after the last 3 Monthly bars didn’t manage to touch the upper Bollinger band. The Weekly bar closed on the 8 EMA short term sentiment line, but as a LH LL bar.

So far the correction covered almost 50% of the last bullish wave, the one that has followed the Brexit decision and made a new all time High eventually.

Currently the price action doesn’t look strong, but is not ready to decline fast – either. Most likely by the current price action, we are going to stay in the current Daily range 17822-18366 for another week – at least.

Taking out the Monthly Low at 17822 (as mentioned above it is not very likely to happen in the coming week) is a bearish setup to reach the 17200-17300 area, right on a clear downtrend line connected the previous all time High with the next Lower High around. It is also a 138.2% projection of the bearish wave that has been made so far.

The way down to that trigger point at 17822 – is full of obstacles and support levels, so in this case it is recommended to wait for the Monthly Low to be taken out before entering a bearish position in the Daily timeframe.

 

Dow Futures, Daily chart with main support and resistance lines (at the courtesy of prorealtime.com)

Dow Futures, Daily chart with main support and resistance lines (at the courtesy of prorealtime.com)

 

 

Disclaimer: Anyone who takes action by this article does it at his own risk and understanding, and the writer won’t have any liability for any damages caused by this action.

 

Gil Ecker

[email protected]

Market Analyst and trader

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