Wednesday 30 November 2016

Dow Jones 30 index ripe for a consolidation.

The Dow Jones 30 index is ripe for a consolidation after a strong move over the past few weeks. Its broken key long term resistance, and I expect these levels to be tested for support going into the year end. Trend is up for now on a cloud chart basis, with the top end of the cloud as a key support zone!

Levels to watch for support are: 23% Fib retracement :18858, and then 38% Fib level 18673, which is part of old resistance levels, that is the new support zone! Expect a brief consolidation of recent moves, and then continuation of the rally.

Happy trading.
Richard Muller

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