many times in the past we posted about the positional view of dow jones.
recently mention to sell below 15250 and even mention to sell at higher with 15710 sl, before that buy given at 14850 and erlier to this posted sell call at 15420 all positional given a good movement buy why??? look at the chart above.
if we can see it clearly its pretty clear that its trading into trendline channel and it has taken the support on trendline in yesterdays session, and it has confirm this today with a green bar but one can wait till todays close also.
another thing we can see is with RSI it has given a ” POSITIVE CONVERGENCE” signal where rsi not able to make a new low on chart but thus price has given a new low compare to its recent low. so this can indicate that yesterdays low means 14700 is good support for market now, and till its not going below this we can still expect for support here.
as per candlestick we can see that yesterday it has given a DOJI candle on chart and this doji candle always indication of trend reversal only on important points, so if today’s gains sustain by market this we can see reversal in coming days.
another pattern we can assume is ” DOJI EVENING STAR” not exactly but almost identical, this pattern is also form on important reversal point.
so ultimate conclusion is if dow jones close positive today, then we can expect a reversal in trend with the support of 14700 on closing basis, thus we cant avoid the fall below this level also, if it able to give close below 14700 fall is also expected, so keeping this level as stop loss one can buy here, and if close below this then one can enter into sell position also, but wait till it give close below support trendline.