DJIA: Trading Scenarios_02/13/2018
After the DJIA updated its absolute maximum near the 26620.0 mark at the end of January, the index fell sharply in the next two weeks, losing about 15% and reaching a key support level of 23200.0 (EMA200 on the daily chart).
In the following days, investors attempted to buy back the index near the critical support level, and the DJIA rose against the background of continuing high volatility of the stock markets to a resistance level of 25200.0 (EMA200 on the 4-hour chart).
To date, DJIA is trading near the short-term resistance level 24820.0 (EMA200 on the 1-hour chart), above the important support level of 24050.0 (Fibonacci level 23.6% of correction to the growth from the level of 15650.0 in the wave, which began in January 2016. The maximum of this wave and the Fibonacci 0% level is near the 26620.0 mark).
Meanwhile, investors remain cautious while the DJIA is in the zone between the levels of 23200.0 and 25200.0. A breakthrough in one direction or another will determine the priorities for the direction of further movement.
The first signal for the resumption of long positions may be the fastening in the zone above the short-term resistance level of 24820.0 (EMA200 on the 1-hour chart). The breakdown of the support level of 24050.0 may provoke further corrective downward movement.
Support levels: 24050.0, 23800.0, 23200.0, 23000.0, 22450.0
Resistance levels: 24820.0, 25200.0
Buy Stop 24970.0. Stop-Loss 24240.0. Take-Profit 25200.0, 26600.0
Sell Stop 24240.0. Stop-Loss 24970.0. Take-Profit 24050.0, 23800.0, 23200.0