Dow continues its sideways corrective move. Trend remains bullish as no important support has broken. The good news after this consolidation at these levels is that it will be easier to recognise when support fails. We believe that wave (V) may still have a bit of room to cover upwards and that it is most probable that only a fraction of this move is over. Higher prices are expected in DOW as long as prices are above 13852. Long position should use it as cover. A break below this support will push prices at least towards 13650. Until then, our targets will be higher towards 14150 at least. Weakness in Europe worries us and that is why should be extra cautious.Most European indices have completed five waves down and are now pulling back up in a corrective manner. We believe that when the next down leg starts in Europe, US indices will follow downwards. This could take this whole week until DOW makes a top. Topping is a time-consuming and lengthy process. should have patience. Sometimes like this, it is preferrable to wait for a break rather that guessing that the top is in. This strategy is preferred in cases like this where the targets of the expected decline are big. The final wave patterns could eat up your mental and physical capital as well, before it completes.
As always, thank you for taking the time to catch up on my thinking.
A term used to describe a trader who is expects that a particular asset – be it a commodity, currency or product – to rise in value. The opposite of a ‘bear’.
The idea is that bulls attack by bending their heads and poking their opponents upwards with their horns, symbolising the fact that they are buyers, driving prices up.
Beliefs held by the aforementioned ‘bulls’ of the trading world, are described as bullish. Characterised by a generally optimistic outlook on the state of a given asset, a bullish outlook would suggest that a rise in value is imminent. Opposite of bearish.
A term used to describe a trader (bear) who is expects that a particular asset – be it a commodity, currency or product – to fall in value. The opposite of a ‘bull’.
The idea is that bears attack by getting up on their hind legs and striking their opponents down with their paws, symbolising the fact that they are sellers driving prices down.
Beliefs held by the aforementioned ‘bears’ of the trading world, are described as bearish. Characterised by a generally pessimistic outlook on the state of a given asset, a bearish outlook would suggest that a fall in value is imminent. Opposite of bullish.