DOW JONES – yesterday’s Hammer signals deeper pullback

Slobodan Drvenica Windsor Brokers

DOW JONES

Today's fresh extension of pullback from double upside rejection at 20630 increases risk of deeper correction.
Strongly overbought daily studies and Hammer candle that was left yesterday support negative scenario.
Further bearish signals will be generated on reversal of daily RSI/slow stochastic from overbought territory.
Fresh acceleration lower penetrated into thick hourly cloud and eyes first pivot at 20490 (hourly cloud base).
Break here and 20477 (15 Feb low) would accelerate towards next strong support at 20380 (Fibo 38.2% of 19982/20624 upleg).
Also, profit-taking at the end of the week, after strong five-day rally, would further accelerate near-term bears.

Res: 20600; 20631; 20700; 20829
Sup: 20490; 20477; 20380; 20300

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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