Dow has made all time highs and optimism is all around, expecting that the rally will continue. We are confident in our wave count that we currently trade inside wave 5 which is the final upward wave of the entire move from 12471 as shown in the daily chart below.
After this 5th wave is over, a correction will follow and then we will have a clearer picture for the longer term trend. The correction might pause at 13500 or go much lower. But it’s too early for that discussion. Now we focus on the shorter term wave count as shown below.
Another 4th wave correction is expected early this week to last for at least a day. Then a new higher high is expected to complete 5 waves from 13784. Therefore should be very cautious as the rally could very soon end. Support levels are depicted in the chart above. For more help trading this index, don’t hesitate to contact us.
As always, than you for taking the time to read my post.
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.