Dow Jones US30 Chart Technical Outlook a Doji-style candle posted at an all-time high of 43,915
Wednesday’s price action posted net gains of 1,518 pips. Yesterday we posted a new all-time high of 43,915.
However, there are some warning sides that we could see a correction to the downside:
- the daily chart shows a doji-style candle at the high. This formation highlights indecision.
- we are trading close to the trendline resistance of an Ending Wedge pattern.
We have support at 42,821. The previous swing high from September 27 is located at 42,721.
Moving out to the weekly chart, if the index closes close to current levels, it will offer a Marabuzo support level (midpoint from the open and close of a strongly bullish candle), close to the support zone (42,821 to 42,721)
Conclusion: No one likes to buy the high trade. My preferred stance would be to watch unfolding price action and buy the dip close to 42,800 next week.
