-
This article reviews the potential ABC (orange) correction and how deep the retracement can go with the U.S. Presidential elections around the corner.
-
A strong bullish bounce (blue arrow) could confirm the uptrend. A bear flag (green arrow) could indicate more downside.
-
Once price breaks below the 38.2% Fib, then there is substantial bearish space (red box) for a significant move lower towards the 78.6% Fib.
The Dow Jones Index (DJI 30) tested the previous top… but price action was unable to break it.
Price Charts and Technical Analysis
DJI 30 is showing two bearish monthly candles in a row. This could confirm a bearish bounce. Plus the end of the wave B (orange).
The start of the wave C (orange) is confirmed once price action is able to break below (orange arrow) the 21 ema zone. The first target is the support zone (blue box).
A second bearish breakout could indicate an even deeper retracement towards the previous bottom and long-term moving averages. Only a break (blue arrow) above the resistance invalidates (red x) the bearish ABC pattern.
On the daily chart, price action is still above the shallow 38.2% Fibonacci retracement level. This means that bears should still be very careful of this Fib and the support zone.
A strong bullish bounce (blue arrow) could confirm the uptrend. A bear flag (green arrow) could indicate more downside.
Once price breaks below the 38.2% Fib (green check), then there is substantial bearish space (red box) for a significant move lower towards the 78.6% Fib.
The analysis has been done with the ecs.SWAT method and ebook.
Elite CurrenSea Training Program(s) should not be treated as a recommendation or a suggestion to buy or sell any security or the suitability of any investment strategy for Student. The purchase, sale, or advice regarding any security, other financial instrument or system can only be performed by a licensed Industry representative; such as, but not limited to a Broker/Dealer, Introducing Broker, FCM and/or Registered Investment Advisor. Neither Elite CurrenSea nor its representatives are licensed to make such advisements. Electronic active trading (trading) may put your capital at risk, hence all trading decisions are made at your own risk. Furthermore, trading may also involve a high volume & frequency of trading activity. Each trade generates a commission and the total daily commission on such a high volume of trading can be considerable. Trading accounts should be considered speculative in nature with the objective being to generate short-term profits. This activity may result in the loss of more than 100% of an investment, which is the sole responsibility of the client. Any trader should realise the operation of a margin account under various market conditions and review his or her investment objectives, financial resources and risk tolerances to determine whether margin trading is appropriate for them. The increased leverage which margin provides may heighten risk substantially, including the risk of loss in excess of 100% of an investment.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.