Dow Jones Near Touch Demand Line of Ascending Broadening Wedge

1. Sept. 2022

Large ascending, broadening wedge structure looks to be respected with today's backtest of the wedge's demand line. This comes after a test of the supply line almost two weeks ago and a nearly 9% draw down in price. Coupled with divergence on the oscillators, the more probable result from strictly looking at this TA would be a short term trend reversal to the upside. Given the overall bearish market conditions it is I wouldn't be surprised to see a partial rise which doesn't result in resetting the supply line at the top of the wedge. Could be a nice place to take a quick long with a stop/loss somewhere below the demand line of the wedge. A possible first target would be around $33280 which was the previous high before dropping into this wedge. There isn't a ton of historical significance but it recently held as resistance for several days.