DOW Jones Bearish Divergence on the daily
Hello Tradingview,
this is my second post. Looking on the daily DJI chart I spot bearish divergence, according to the RSI and MACD indicators, current divergence can be broken to the upside and if support is tested, my analysis invalidates. For this matter the DJI as the NASDAQ index is converging bearish. Rising wedges as known result in bearish consequences, therefore I am waiting to start a short setup with any bearish ETF.
More on the analysis: 8, 13, 21 and 55 are above the 200 EMA which had a bullish cross, June (8, 13, 21) to July (EMA 55), for this matter being the DJI one of the most important indicators in the market, I am bearish. The three first mentioned EMAs have to cross to the downside to enter a short in my strategy. Wait for a proper trade setup!
As for MACD and RSI they both show a bearish behavior when analyzing the last few months (April 14th to this day) they show bearish divergence. For this matter if the trending lines drawn by me are broken this analysis can be wrong. But as long as they are not broken I foresee a bearish result from this time. Staying out of the markets for a few more days until clearer view to enter either a short or a long position.
The last thing I see in my analysis is the rising wedge, yet another bearish indicator, the result of this rising wedge in my view has a result of -28% to the downside which would have severe consequences on other markets.
All percentages shown in callouts are according to the wedge's top.
Regards and happy trading.
JC.
this is my second post. Looking on the daily DJI chart I spot bearish divergence, according to the RSI and MACD indicators, current divergence can be broken to the upside and if support is tested, my analysis invalidates. For this matter the DJI as the NASDAQ index is converging bearish. Rising wedges as known result in bearish consequences, therefore I am waiting to start a short setup with any bearish ETF.
More on the analysis: 8, 13, 21 and 55 are above the 200 EMA which had a bullish cross, June (8, 13, 21) to July (EMA 55), for this matter being the DJI one of the most important indicators in the market, I am bearish. The three first mentioned EMAs have to cross to the downside to enter a short in my strategy. Wait for a proper trade setup!
As for MACD and RSI they both show a bearish behavior when analyzing the last few months (April 14th to this day) they show bearish divergence. For this matter if the trending lines drawn by me are broken this analysis can be wrong. But as long as they are not broken I foresee a bearish result from this time. Staying out of the markets for a few more days until clearer view to enter either a short or a long position.
The last thing I see in my analysis is the rising wedge, yet another bearish indicator, the result of this rising wedge in my view has a result of -28% to the downside which would have severe consequences on other markets.
All percentages shown in callouts are according to the wedge's top.
Regards and happy trading.
JC.
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