The Dow Jones has dropped almost 500 points from May 28, 2018 levels as discussed earlier. The index is looking set to break substantially lower and the break below 23,500 levels, which is interim support, would accelerate much lower. Looking into the wave structure again, the Dow Jones Index seems to have resumed its wave (3), which is expected to drop much lower towards 21,000 levels at least. Please note that if the above wave counts hold to be true, prices would remain much below 25,000 levels and would also threaten the last 10 years uptrend! It is because, the 5th of 5th of 5th wave termination point was seen at 26698 levels in January 2018.
Trading plan:
Remain short with stop at 25,500 levels, target is open and much lower. (21000)
Fundamental outlook:
Watch out for German Consumer Price Index at 08:00 AM EST and US GDP Annualized at 08:30 AM EST.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
Technical outlook:
The Dow Jones has dropped almost 500 points from May 28, 2018 levels as discussed earlier. The index is looking set to break substantially lower and the break below 23,500 levels, which is interim support, would accelerate much lower. Looking into the wave structure again, the Dow Jones Index seems to have resumed its wave (3), which is expected to drop much lower towards 21,000 levels at least. Please note that if the above wave counts hold to be true, prices would remain much below 25,000 levels and would also threaten the last 10 years uptrend! It is because, the 5th of 5th of 5th wave termination point was seen at 26698 levels in January 2018.
Trading plan:
Remain short with stop at 25,500 levels, target is open and much lower. (21000)
Fundamental outlook:
Watch out for German Consumer Price Index at 08:00 AM EST and US GDP Annualized at 08:30 AM EST.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
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