Trading Plan for Dow Jones for June 29, 2018


Technical outlook:

The Daily chart for the Dow Jones is indicating that the index might have topped out and finally terminated wave (2) correction as a a-b-c around 25,400 levels earlier in this month. The index has reversed sharply after that and seems to have started constructing wave (3). As labelled here, wave 1 of wave (3) is ready and if this structure holds to be true, we should witness a counter trend rally towards 25,100 levels. Looking at the wave counts in general, the indice has formed waves (1) and wave (2) of a larger degree and till the time prices stay below 25,400 levels broadly, selling on rallies is recommended. Furthermore, the break below consolidation support line shown above would confirm and accelerate the bearish view further. Much time has been spent into carving wave (2) as a consolidation, hence a breakout is expected to be powerful and would surprise most traders going forward.

Trading plan:

Short around 25,100/200, stop above 25,500, target below 22,000.

Fundamental outlook:

There are no major events lined up for the rest of the day.

Good luck!

The material has been provided by InstaForex Company -