Dow on cross road on weekly TF.

5 Jun 2023

Looking at weekly chart from 2017, Dow is was trading in a uptrend channel.Jan 2018 was first top made of channel at "A" , At " B" it made the support line. At "C" it made the second top, At " D "1st bottom was formed. At "E" Dow break out above channel in January 2021, This was period of ultra low policy, and packages for companies people's due to pendamic. Dow broke it's trend channel and was trading above this channel till May 2022. Dow gave life time high of 36700 .( The first high. )It came within the channel after May 22 and took second support at F ( we call it as support line from 2017 ). It made second lower high at Dec 22, and from red line one can see Dow had not gone above red line which we call it lower high downtrend line. Yesterday Dow rose 700 points and in 1 day I you see Dow had touch the lower high trend lin (red) and the upper end of uptrend channel at G. So right now Dow is making lower high of33762 at point G and making higher high of uptrend channel which was started from 2017. So right now Dow is at cross road at point G. Point G become resistance of down trend line and it also at resistance of uptrend channel. This simply means wait. Don't hurry in taking entry. Yesterday 700 point move is because of debth news and no fundamental change had happenedover night so Dow should rise 700 points. If fact dollar has weeken, crude out put is going to be cut. There are many headwind and tailwind. So wait and whatch how Dow is opening today, we hawe to see followup rally. Mostly after big move market consolidate.