Dow Jones US30USD Chart Technical Outlook mixed signals, 38,773 is a critical level
We have two scenarios unfolding for the index:
- The six-hour chart highlights an expanding wedge formation. This pattern has a measured move target of 37,244. We have a 261.8% extension level located at 37,170. Bespoke resistance is located at 38,773.
- The four-hour chart highlights a Bat formation. This will be completed on a move to 39,851.
Conclusion: Although the medium-term bias remains bearish, the immediate outlook is unclear. I need to see a reaction lower from 38,773 to confirm the 2nd wave in a bearish Elliott Wave count (5 waves).
