DJI appears to be in a corrective period.
I have seen this as a zig-zag which has led on to either another zig-zag or what may not have finished triangle.
I have added the moving average for extra confluence and the market appears to have made a very short term flag (trend continuation pattern).
To me this is looking upside and could potentially be the start of the uptrend continuing.
I would be very wary that it could be forming a triangle, in which case it would pull back and make a further two waves before the uptrend resumes.
Having said that, it could go on to become a much more complex corrective wave.
If I was to take this trade I would be looking for a breakout of the possible triangle trendline and a very short term pullback or consolidation for entry.
Again stops would be tight and take profit would be on a fib level.
Any advice is appreciated,
Thanks.
I have seen this as a zig-zag which has led on to either another zig-zag or what may not have finished triangle.
I have added the moving average for extra confluence and the market appears to have made a very short term flag (trend continuation pattern).
To me this is looking upside and could potentially be the start of the uptrend continuing.
I would be very wary that it could be forming a triangle, in which case it would pull back and make a further two waves before the uptrend resumes.
Having said that, it could go on to become a much more complex corrective wave.
If I was to take this trade I would be looking for a breakout of the possible triangle trendline and a very short term pullback or consolidation for entry.
Again stops would be tight and take profit would be on a fib level.
Any advice is appreciated,
Thanks.
Comment:
I wouldn't be surprised if DJI was to fall back slightly and retest the trendline before continuing upwards.