DJIA sell signal, short opportunity
DJIA on daily we have been waiting for some time for a breakout of this triangle and yesterday it occur. At the beginning of the trading session, DJIA gapped up and retail traders tried to break it up but big boys enter that straight and start to sell, and the price drop right away and keep dropping until the end of the day. Now it is very likely DJIA will continue its move down but the question is how far away. Will 50 days MA hold as support today or will drop like a rock?
Volume though does not confirm price action as it was a pretty low volume on breakout which is not the best option for bears.
Still, the price is coiling between 8, 20, and 50 days MA which will move DJIA hard.
RSI is in a neutral position.
MACD histogram tick red and the MACD line cross below signal line signal shift in momentum and DJIA is going down.
Overall: maybe it is not all done for bulls. This low volume breakdown could mean it is only fakeout and death hook and DJIA will exploit to the upside. A drop below 50 days MA will be a 100% sign we are going down and down hard. The first major support would be the lower trend line and BigRed or 200 days MA. In that case, the huge bull flag would be formed, but the price needs to stay above the support lines.
From the other side, if bulls somehow buy in, step in like never before, and bring DJIA above the upper line, it would be a very very bullish move with targets towards ATH, but that is less likely.
Volume though does not confirm price action as it was a pretty low volume on breakout which is not the best option for bears.
Still, the price is coiling between 8, 20, and 50 days MA which will move DJIA hard.
RSI is in a neutral position.
MACD histogram tick red and the MACD line cross below signal line signal shift in momentum and DJIA is going down.
Overall: maybe it is not all done for bulls. This low volume breakdown could mean it is only fakeout and death hook and DJIA will exploit to the upside. A drop below 50 days MA will be a 100% sign we are going down and down hard. The first major support would be the lower trend line and BigRed or 200 days MA. In that case, the huge bull flag would be formed, but the price needs to stay above the support lines.
From the other side, if bulls somehow buy in, step in like never before, and bring DJIA above the upper line, it would be a very very bullish move with targets towards ATH, but that is less likely.
Consistency is the key of success....
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