Dow Futures: Weekly Price Action & Technical Analysis as on 26-MAR-2017

20 weeks after the US elections, a big bearish Weekly bar was seen for the first time. Like the S&P Futures, the Dow Futures have made an Upthrust (false thrust up followed by a reversal to the other direction) last Tuesday, revealing  weakness. The current correction is seen on the Daily chart as an AB=CD pattern.

 The price created a bearish setup by taking out the Weekly Low at 20745, and last Friday the price hit the same amplitude target below (see the Daily chart).

Last Friday closed as a big Doji bar closing in the middle, meaning that the market most likely has time and is not in a hurry to decline.

However, the market has already created a bearish Follow Through setup price action, by taking out  the Low of last Wednesday. The target is at the 20345 level area, near the 161.8% expansion level of the whole decline since the March 1st.

I wouldn’t recommend that bearish setup (on a Swing trade) because of last Friday’s closing in the middle, and the fact that it is bucking a strong uptrend on higher timeframes.

Taking out the High of last Thursday is a bullish setup to reach 20920. Most likely if that happens, it should happen within more than one trading Day – unlike the behavior on the way down. The resistance at 20810 should play a major role in understanding that price action..

 

Dow Futures, various timeframe charts (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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