DJI 12th August

A nice move down at the end of last week, with a harami posted on Weds, bearish action with a weak close on Thursday and a gap down on Friday. Notice how price rebounded off the WS1 at the end of the week after being rejected at the Demark R1 on Tuesday.
Pivots for next week show an open below the weekly pivot, which matches nicely with the DR1 to make strong resistance overhead and gives a bearish outlook. DS2 also matches WS1 for support and so these two areas may act as magnets for price on Monday.
The Stoch divergence is playing out nicely with plenty more downside left.
For early part of next week i'm looking for a bounce to 25400 (WP) to add short for a continued move down to 25125 (WS1) and 25027 where we will reassess based on the reaction to the monthly pivot.

Commentaire:

This is playing out very nicely, we dropped to WS1 then climbed to WP before a drop. We are now at MP so expect a bounce or consolidation, particularly as it’s round number 25k support, but aiming to get to WS2 eventually.

Commentaire:

WS2 hit and what a reaction, if you followed the plan and switched long at the pivot you have done very well. I’m on holiday in France so missed the whole move after getting stopped out at entry at the MP, as wanted to go risk out ASAP. Very frustrating but that is life. This whole move is pre Opex games so I don’t believe for a second, however we have smashed through several pivots so now remain flat until the next set up presents itself. Pivot to pivot is the plan and the last few posts have proven how effective it can be.