DJ-30, has gapped down below the current triangular formation and is headed towards the bottom side of the rising channel. This potential setup has a Reward-to-risk ratio of about 2.5
As can be seen on the four hour ( 50% fib level) the dow jones has successfully broken the 24.500 fibonacci level a sustained break below will bring on a price test at 24.157 ( 50% fib level ), in my opinion signifying a rejection of the price and a hard bullish spike starting off the new bullish trend.
Last week fear @ top.
Dont forget last week.
This is a good maybe we will see this is the best opportunity to go cash and sell all stocks.
Time will tell. History will write.
Good LUck.
I have been waiting for this for such a long time. Finally we made a breath down so we can hop again. DJI world market stocks correction. -10% value. 100MA support. 38.2%FIB trump Rally. RSI oversold with signs for a correction. 78.6% FIB last leg of the move. Fundamentally everything looks perfect. Go for the 30K. 3 positions sizes with good RRR. Good Luck
Updated DJI chart. Projecting this wave's rise to be equal to Wave 1 (73.38%). The b wave of Wave 1 was 26 months from the 2009 low. Wave 3 was 43 months (1.6 x Wave 1). Wave 5 is closing in on 26 months. Even if this up move is only finishing wave 3 (the alternate count that is super bullish), there still should be a nasty correction once target is reached....
Analysis is based on 80% technical and 20% fundamental analysis. If analysis goes well - expected duration for target is 1 - 1.5 year. Reward ratio 1 to 6.5. Volatility is greatest at turning points, diminishing as a new trend becomes established.
Low to Low (2009-2016) and Low to High (2016-2018) is a valid pattern. Appears that we may be in wave 3 of final wave 5. After the next pullback, a rise to the 24000-24200 area would also provide a .382 to .618 ratio from the 2016 low.
Like we know the NDX and many other stocks are over valued. Based on the fisher index we are at current highs which need a correction. If I had any long position on the NDX I should sell them now absolutly. I don't really expect a fall of thousands of pips but a retracemend to around 3500 to 3800 around this range is possible. The bubble is not in tech but tech...
dax on the even longer way down ! Is this the new channel ? Or it can fall lower with US fall ?
For the moment dax is at the lower edge of this new channel and if US don't follow the downtrend then dax may go towards the upper edge of this new channel .
That low of 12320 will be retested soon . Maybe today . Already tested on June 30 , and July 06 . And who knows ? Maybe the third time is lucky .
As you can see in the above Fibonacci Time Zone and the below Trend-Based Fib Time .
