Technical analysis for Dow Jones for October 31, 2018

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Technical outlook:

A daily chart view has been presented here for Dow Jones to have a look at larger swing. As discussed yesterday, Dow was expected to rebound higher and it is trading above 25,200 levels for now. If we consider the bigger picture, the entire drop from 26,950 through 24,100 levels can be considered as the first swing lower. Most probably, it should be followed by a corrective rally towards 26,000 levels which is also seen to be converging around the fibonacci 0.618 resistance of the drop. If prices manage to push higher through those levels, it should be considered as an opportunity to initiate short positions. Resistance should be strong at 26,950 levels and risk should be maintained there. For now, Dow Jones is setting up for a much deeper correction and selling on rallies should be favoured.

Trading plan:

Aggressive traders should be long against 24,000 levels targeting 26,000, while conservative traders should look to sell around 26,000 levels with stop above 27,000.

Good luck!

The material has been provided by InstaForex Company - www.instaforex.com