Dow Jones Faces Major Resistance Around 29600
29 July 2020
Dow Jones might be preparing to reverse lower towards initial support around 23000 either from current levels or after testing 27000 handle in the near term. Bears are looking to remain in control until prices stay below 27600 levels.
Dow Jones probable wave counts are as follows: The drop from 29600 through 18200 levels was an impulse wave, labelled as Wave (1) of a higher degree. An impulse drop is ideally followed by a corrective rally.
Dow Jones had produced a corrective zigzag counter trend rally from 18200 lows, towards 27600 highs between March 23 and July 08, 2020 respectively. It has been labelled as A-B-C, potentially terminating around 27600 as Wave (2).
If the above larger degree counts hold well, Dow Jones should be underway towards 23000 and beyond as Wave (3) progresses. Furthermore, the indice should stay below 27600 levels, going forward.
Looking into the lower degree wave counts since 27600 highs on June 09, 2020; the indice seems to have carved Waves 1 and 2 around 24843 and 27000 levels respectively. If the above counts hold well, the indice should sharply reverse lower towards 23000.
Alternately, the indice might complete its lower degree Wave 2 around 27000 levels before reversing lower again. Either way, be prepared for a religious decline towards 23000 levels at least in the near term.
Prepared by
Technical Analysis Team
Trade with
Abans Global
- Authorised and Regulated by FCA
- Customer Support 24/5
- Low Spread & Commission
- Instant Execution
- No Dealing Desk
