Dow Jones: Update on the short term price action.

Following Trump's phase 1 trade deal tweets, DJI rose but the uptrend stopped on the Higher High (bold black) trend line on the 4H chart. With 4H technicals turning neutral (RSI = 56.131, MACD = 85.700, Highs/Lows = 0.0000), this may be an early signal that today's High may deliver a rejection.

How far can that go? The previous two Higher Highs delivered a rejection of -1.50% and -3.00% respectively. The sequence can be either 1.50% lower on every rejection or double the decline of the previous one. Assuming it is the first, more moderate scenario, the potential drop goes as low as the first two symmetrical Support levels: 27,110 and 26,915.

It is important to mention at this point that even though Dow Jones is making Higher Highs on that pattern since November 19th, the RSI sequence on 4H is actually bearish on Lower Highs indicating weakness.





** If you like our free content follow our profile (tradingview.com/u/InvestingScope) to get more daily ideas. **

Comments and likes are greatly appreciated.