D-JONES, Important Levels To Consider Next Times!

Hello Traders Investors And Community, welcome to this update-analysis where we are looking at the DOW JONES Industry Index 4-hour timeframe perspective, the recent price-action, the current importances in the structure, what to consider next times and how to handle upcoming situations in the right manner. As the overall stock-market is recovering from its corona-breakdowns seen this year there are major indices which already filled important key-levels such as the huge gap in the SPX which I mentioned and now filled properly, the DOW is still below these levels and could possibly follow-up with its gap-fill. In this case I detected some important signals which can make this happen when the DOW moves correctly within its range, but this does not mean the market is comptletely bullish as the bear-market is still not confirmedly over bearish action can increase again as markets approaching solid supply zones.

Looking at my chart you can watch there that the index just moved above its descending-channel-formation and formed this smaller ascending-channel-formation where it also moved above the upper boundary, these factors give an increased bullish pace within here and can indicate continuation to the upside which will be given when the index manages to travel above the last rising resistance of its channel as you can watch it in my chart, it is either possible to form a consolidation before doing this or a immediate breakthrough, a consolidation is more likely within this structure. When this properly plays out the index will look for the gap to be filled which will be crucial as this can be a point where supply enters the market as people taking profit and the price moves to the downside therefore it can also be considered a possible short-zone as you can watch it marked in my chart.

It is highly important to take note that although the index sending some decent bullish signals at the moment it is still not confirmedly bullish not only because there are still remaining strong resistance-levels but also because there is still a huge difference between real economy and stock-market as stock-market is showing gains real economy is in a decline, to provide a healthy unspeculative market environment these two need definitely move together. When the index approaches the higher levels we need to elevate and be prepared for possible bearish signs as this will be crucial level where selling pressure can enter while many retailers rushed into the market to do not pass away the rally smart-money is still not fully in the market and in the sidelines this can be a indication for more bearish pressure assuming over the course of next weeks and months.

In this manner, thank you for watching, support for more market insight and have a good day!
“Forecast is a mixed fortune in todays market environment. ”

Information provided is only educational and should not be used to take action in the markets

Comment:

ANALYSIS UPDATE: The DOW continued with the exact flag formation breakout to move into the final flag formation target zones.

Since the DOW moved into the final flag formation target zones it formed the bearish rejection to finalize the flag formation confirmation completion.