US30 or DOW Jones have finally made a long waited retracement. This 60% Fibonacci retracement could go both ways if we look at the technical analysis. First we must understand that this drop of a 60% could be attributed to the investor's reaction to world news and the fear of a recession in the US. News of the Novel corona virus could have triggered the "sell first ask later" reaction as well as other fears troubling investors at the start of 2020.
Looking back we can see that this is the first noticeable retracement since September 2019.
After this 60% retracement we expect a heavy pullback, look for signs of reversal before entering on a buy. Smart investors wont ignore this opportunity to go long on the DOW after dropping in price.
A bearish scenario could play out if there's further downside and support it's broken to the downside.
Good luck to you all.
Trade with appropriate risk management and protect your capital.
Looking back we can see that this is the first noticeable retracement since September 2019.
After this 60% retracement we expect a heavy pullback, look for signs of reversal before entering on a buy. Smart investors wont ignore this opportunity to go long on the DOW after dropping in price.
A bearish scenario could play out if there's further downside and support it's broken to the downside.
Good luck to you all.
Trade with appropriate risk management and protect your capital.