Dow jumps on relief rally as fears on Hurricane Irma, North Korea fade
|DOW JONES
Dow Jones future contract for September delivery jumped near 22000 mark after Wall Street opened higher on Monday. US stocks received strong support on easing fears over North Korea and weakening of Hurricane Irma, which did not have expected catastrophic impact, as it was expected.
The Dow is establishing in fresh direction to the upside after being entrenched within the range in past three days. Also, two long-legged Dojis, left in past two days, confirmed strong indecision. Fresh rally broke above 21921 (Fibo 61.8% of 22131/21580 pullback signals that corrective phase may be over. Confirmation of such scenario requires close above 21921 pivot, as fresh acceleration higher also broke above the upper boundary of triangular consolidation, developed on pullback from 22131 peak.
Next barriers lay at 22000 (Fibo 76.4%) and 22035 (01 Sep Shooting Star high) break of which would open way for retest of new all-time high at 22131 (posted on 08 Aug) and possible extension towards Fibo projection at 22341 on break.
Larger bulls which were on hold on recent corrective pullback are regaining traction and underpinned by newly formed daily Tenkan-sen/Kijun-sen bull-cross.
Broken Fibo 61.8% barrier now acts as initial support at 21921, followed by rising daily Tenkan-sen (21869) also today's low.
Res: 22000; 22035; 22066; 22131
Sup: 21921; 21869; 21845; 21741
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