Possible ABCD correction for a long...
Dow Jones Industrial Average:
US equity indexes concluded marginally higher Monday, underpinned by tempered expectations for an aggressive Fed rate cut at the end of the month. The Dow Jones Industrial Average added 0.07%; the S&P 500 advanced 0.28% and the tech-heavy Nasdaq 100 rallied 0.90%.
From a technical viewpoint, nonetheless, the research team are still exploring the possibility of a dip in price to H4 trend line support (extended from the low 26436). Note this ascending support brings with it a 61.8% Fibonacci retracement at 26930, a 50.0% support value at 26904 and a potential ABCD (black arrows) correction terminating between the 161.8% and 127.2% Fibonacci ext. points (yellow) at 26883/26978.
However, the technical landscape on the bigger picture remains at conflict, with Monday’s report voicing the following:
From the weekly timeframe:
Aside from a brief spell of indecision four weeks back, and last week’s retracement losing more than 230 points, the Dow Jones Industrial Average has emphasised a strong bullish tone since shaking hands with the 2018 yearly opening level at 24660 in early June.
Taking out resistance at 26667 and shortly after retesting it as support has so far provided a floor to this market. With limited resistance in sight until connecting with 28070 (not visible on the screen), a 127.2% Fibonacci ext. point taken from the low 21425, additional buying could still be seen over the coming weeks.
Daily timeframe:
Contrary to weekly price, daily action is defending the underside of 27356: the 161.8% Fibonacci ext. point. Continued selling from here has a downside support target set at 26773, located just north of weekly support at 26667.
Areas of consideration:
Should the index shake hands with H4 trend line support and merging Fibonacci levels (see above), a long could be considered, with a stop-loss order fixed beneath 26883. The first take-profit target from this point will depend on the approach, but overall the research team have 27356 on the daily timeframe in sight.
US equity indexes concluded marginally higher Monday, underpinned by tempered expectations for an aggressive Fed rate cut at the end of the month. The Dow Jones Industrial Average added 0.07%; the S&P 500 advanced 0.28% and the tech-heavy Nasdaq 100 rallied 0.90%.
From a technical viewpoint, nonetheless, the research team are still exploring the possibility of a dip in price to H4 trend line support (extended from the low 26436). Note this ascending support brings with it a 61.8% Fibonacci retracement at 26930, a 50.0% support value at 26904 and a potential ABCD (black arrows) correction terminating between the 161.8% and 127.2% Fibonacci ext. points (yellow) at 26883/26978.
However, the technical landscape on the bigger picture remains at conflict, with Monday’s report voicing the following:
From the weekly timeframe:
Aside from a brief spell of indecision four weeks back, and last week’s retracement losing more than 230 points, the Dow Jones Industrial Average has emphasised a strong bullish tone since shaking hands with the 2018 yearly opening level at 24660 in early June.
Taking out resistance at 26667 and shortly after retesting it as support has so far provided a floor to this market. With limited resistance in sight until connecting with 28070 (not visible on the screen), a 127.2% Fibonacci ext. point taken from the low 21425, additional buying could still be seen over the coming weeks.
Daily timeframe:
Contrary to weekly price, daily action is defending the underside of 27356: the 161.8% Fibonacci ext. point. Continued selling from here has a downside support target set at 26773, located just north of weekly support at 26667.
Areas of consideration:
Should the index shake hands with H4 trend line support and merging Fibonacci levels (see above), a long could be considered, with a stop-loss order fixed beneath 26883. The first take-profit target from this point will depend on the approach, but overall the research team have 27356 on the daily timeframe in sight.
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