DJIA: Dow Jones: Breakout to Upside Likely Soon DJIA Dow Jones Industrial Average Futures
The Dow has had a torrid time for 3 months now, falling 14%
from the highs and bouncing three times directly off the
longer term parallel underpinning the rally - and which had
acted as major resistance right up to the point when the new
President/Paradigm took office.
Over those 3 months of wild gyration and whipsaw the Dow
has formed a neat triangle and is now now re-testing the the
falling dynamic which forms the last big resistance line to the
upside.
It's had 3 attempts so far to break this line and now we're
looking at a 4th.
It can do this up to 4 times but on the 5th at latest should
break higher.
Can either follow the break when it arrives and hope the rest
of the world follows it too, in which case volumes will rise and
it will begin to power upwards (stops under the line) or wait
for a potential retest of the dynamic once broken to the
upside - which not come, depending on volumes at that point.
Once broken the first resistance line lies at 24793-24800 and
it may come back from there towards the dynamic one last
time before surging higher again - this will most likely be the
last chance to get long at lower levels if we see it a little
further out in time.
Otherwise, if the Dow does come off from the dynamic for a
4th and likely last time, look to buy around 23869 levels if the
chance presents itself.
The Global Dow chart (next update) should help to provide
confirmation of the break when it comes.
