The Dow Jones started down-trending on June 8 and also painted a "Flag" pattern, but yesterday it broke out.
The RSI indicator is not tanking anymore, MACD shows a beautiful divergence, which signals a possible trend reversal.
For now, I am neutral (but more bullish than bearish) on this particular play, because of the potential scenarios.
I see 3 of them;
>1. We backtest the resistance level(now it serves as a support level), target: 25416.28, and later head to higher levels.
>2. It was a false breakout, and we might head to lower levels, for example, 25017.55
>3. We are going straight to the moon, first target: 26337.71, and the second one is 26985.6
The RSI indicator is not tanking anymore, MACD shows a beautiful divergence, which signals a possible trend reversal.
For now, I am neutral (but more bullish than bearish) on this particular play, because of the potential scenarios.
I see 3 of them;
>1. We backtest the resistance level(now it serves as a support level), target: 25416.28, and later head to higher levels.
>2. It was a false breakout, and we might head to lower levels, for example, 25017.55
>3. We are going straight to the moon, first target: 26337.71, and the second one is 26985.6
