Dow Jones completes a running flat at 26000 levels?

5 gru 2018

The Dow Jones has reversed sharply after testing 26000 levels recently, in line with the discussions held since last several trading sessions. Looking at the higher degree wave counts, it is becoming clear that after having produced Wave (1) impulse between 26950 and 24100 levels, the indice might have carved a 3-3-5 running flat corrective structure labelled as A-B-C on the charts presented here. If the above structure holds true and that Wave (2) terminated at 26000 levels, we could witness a sharp decline as Wave (3) unfolds itself. Please also note that if Wave (2) is in place, prices should stay below 26000 levels going forward, unless the structure is changing. A safe trading strategy could be to remain short for now and look to add fresh short positions on intraday rallies, with risk above 26000 levels and potential reward below 23000 levels respectively.


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