The agreement signed on Thursday between the United States and China led to a growing euphoric sentiment in the stock markets. This sentiment sent to the Dow Jones Industrial Average to a new all-time high of 28,268 points. This context gives us the possibility that the action of the price will develop a corrective movement in the next sessions.
1. The Dow Jones index in its 4-hour chart shows the development of an expansive triangle pattern. Currently, the price moves in the zone of the upper trendline of this expanding triangle. This context makes us suspect that the price could develop a new bearish movement.
2. A bearish position will activate if the price pierces and closes below 28,081 points. In our conservative scenario, the Industrial Average could see 27,773 points.
3. If the price extends its falls, the index could reach 27,582 points and finally down to 27,396 points.
4. The invalidation level of our bearish scenario is located at 28,303 points.
Trading Plan Summary
Entry Level: 28,081 pts.
Protective Stop: 28,303 pts.
1st Profit Target: 27,773 pts.
2nd Profit Target: 27,582 pts.
3rd Profit Target: 27,396 pts.
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