Bullish Potential for DJIA Towards 45,700 Amid Support Breakdown

Key Observations
Fibonacci Extension:
• Fibonacci Extension is used to calculate potential price targets after a pullback.
• Fibonacci Extension Levels:
o 0%: 43,507.08 (beginning of the rise).
o 100%: 45,762.55 (full price target).
o The 45,762.55 level, as the 100% Fibonacci Extension target, serves as a potential take profit area if the price successfully rebounds from support and breaks through previous resistance.
Support and Resistance:
Main Support:
• 43,507.08: Key support near the trendline.
• 43,329.65: First horizontal support level.
• 42,738.60: Second support if breakdown occurs.
• 41,697.23: Last support that maintains the long-term bullish trend.
Main Resistance:
• 44,040.00: Initial resistance area.
• 44,369.69: Second resistance level.
• 44,902.61: Strong resistance (Fibonacci Extension 61.8%).
• 45,762.55: Fibonacci Extension 100% as the main target.
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Potential Scenarios
Bullish Scenario:
• If the price rebounds from the support area between 43,507.08 and 43,329.65, there is potential for a move towards 44,369.69 and 44,902.61.
• A breakout above 44,902.61 will push the price towards 45,762.55 (100% Fibonacci Extension target).
Bearish Scenario:
• If the price falls below 43,329.65, the next critical support areas will be 42,738.60 and 41,697.23.
SMA 50:
• The 50-period Simple Moving Average (SMA) at 43,509.70 still serves as dynamic support near the current price.
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Conclusion
• The 100% Fibonacci Extension at 45,762.55 is the main bullish target if the price can rebound from support at 43,507.08 and break through the resistance at 44,902.61.
• The support area between 43,507.08 and 43,329.65 remains a crucial level to maintain the bullish momentum.
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Bullish Strategy
Entry:
• Buy in the support area between 43,507.08 and 43,329.65.
Target:
• Target 1: 44,369.69
• Target 2: 44,902.61
• Target 3: 45,700 (Fibonacci 100%).
Stop Loss:
• Below 42,738.60 to limit risk.
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Bearish Strategy (If Breakdown Support)
Trigger Entry:
• If the price drops below 43,329.65 (horizontal support) and fails to rebound.
Target Profit:
• Target 1: 42,738.60 (next support).
• Target 2: 41,697.23 (strong last support).
Stop Loss:
• Place the stop loss above 43,507.08, the former support now turned resistance after the breakdown.
• This ensures that risk is controlled if the breakdown fails and the price reverses.
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Important Notes
• Risk-Reward Ratio: Ensure a minimum risk-reward ratio of 1:2 to maintain a profitable long-term strategy.
• Confirmation: Look for a bearish candlestick pattern or high volume during the breakdown to validate the signal.