DOW JONES attempting a 1D MA50 break-out


Dow Jones (DJI) reversed last week’s pull-back and is on a nearly perfect repeat of the last rebound to the top of the long-term Channel Down in an attempt to price a new Lower High. As most recently mentioned 3 weeks ago on our idea below, the Channel had already formed its short-term bottom:

DOW JONES Critical Channel bottom test.

At the moment, based also on the 1D RSI fractals, it appears that we’ll break the 1D MA50 and aim for at least 32800 as a Lower High with a more optimistic estimate on the 0.618 Fibonacci retracement level (33300).

The 1W MA200 (red trend-line) is right below the Channel Down and as we’ve mentioned numerous times on our Channel is the long-term market Support. Breach of that level with a weekly candle closing should immediately test the -0.236 Fib extension and then pursue lower targets on the weekly from there. If that happens we’ll follow up with extensive updates.

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