Dow preparing for pullback rally towards 25200/300!

12 déc. 2018

Dow Jones had settled lower at 24370 levels at yesterday's close. Further to what we discussed, the indice looks to be setting up for a pullback/counter trend rally towards 25200/300 levels from here, before it resumes lower again. Please note that 25200 is also the fibonacci 0.618 resistance of the drop between 26000 through 23870 levels, as highlighted on the chart presented here. Looking into the wave counts again, a higher degree Wave (3) seems to have begun already from 26000 levels and wave i within Wave (3) seems to have terminated at 23877 levels. At the moment, wave ii looks to be unfolding in an a-b-c flat structure and could terminate around 25200/300 levels. If the above counts hold true, we could see a counter trend rally soon towards 25200/300 levels before the bears react and come back into action. It is a safe trading strategy to remain short and/or sell towards 25200 levels, against 26000 with a potential target below 23000.


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