Rally from Jan 17 to Jan 18, now a 61.8 % fib retracement of that. March 15 and Dec 16, double bottom plus positive divergence RSI and price (i.e. lower price but RSI nog making new low). In Elliot wave terms could be Jan 17 to Jan 18 Wave 1, retrace to 61.8 % wave 2 and now wave 3 unfolding.
This should be evident fairly quickly
If not then something else is...
End of year buying and oversold conditions contributing to a long awaited bounce - but where does it get to?
DOW daily chart
Pretty much self explanatory
But some key levels:
Bounce target = previous support 24236 - which coincidentally is the 61.8 % Fibonacci retrace of the downtrend from 3/12/18.
Possible medium term scenario: (very rough !)
1 rally to...
o is it time for a BOUNCE?
Look at the evidence, comparing price action and RSI.
On the daily chart there is positive divergence showing now (remember not an exact science), but this does show that the recent selling may be abating.
So where will the bounce go to?
Well using Fibonacci retracements can be a good method for estimating retracement...
On the longer term chart the Dax shows a clear head and shoulders pattern, broke the neckline and then re-tested it. Now looks like over the medium term will head down to the measured target approximately 10200.
Move could be quick depending on global markets.