Unfolding the Dow Jones 30

DJ30 Technical Analysis

As we have updated you via emails in the past 30 days we took note of the bearish wedge that is being painted in the Dow Jones 30 weekly chart. We have already profited over shorting the Dow in May but recent gains in the index may provide a decent entry as the protective stop loss order is substantially reduced.

DJ30 Weekly Chart

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DJ30 Weekly Chart, 10/06/15

DJ30 Weekly Chart, 10/06/15

“DJ30 Daily Chart

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DJ30 Daily Chart, 10/06/15

DJ30 Daily Chart, 10/06/15

From the weekly chart you can note the bearish wedge we referred to earlier. A weekly close outside the wedge may pave the way for moderate losses in DJ30. At the time of this writing it appears the market price has retraced off the lower support line. The shadow of the candlestick is dismissed as a weekly close is required to affirm the breakout. In order to consider a short trade based on the weekly chart the price must re-test the upper resistance levels as nothing appears to be preventing such a moderate recovery. We turn to the daily chart to concrete our technical entry.

In DJ30 daily chart we can see a third lower high is being painted at the time of this writing. We are dismissing the top H&S as it was not painted following an established uptrend in the daily chart. We could layer our stop above the daily high but instead opt for the latter resistance, which can be easily seen on the weekly chart. We are not placing the protective stop above the weekly high as incurring a potential loss of over +600 points is unacceptable to us. It is difficult to pinpoint what will be the fundamental trigger for the losses but we will have to assume it may be related to Greece.

DJ30 Trade Details

DJ short at market price (18,002)
Take profit: 17,160
Protective stop:  17,230
Risk Ratio (RR): 1 : 4 (approx.)
Estimated duration: 10 days

12/06/15 UPDATE: DJ30 is trading at 17,896 at the time of this writing.

DJ30 Daily Chart 12 June 2015

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DJ30 Daily Chart 12/06/15

DJ30 Daily Chart 12/06/15

We are closing 20% of the short trade at market price.

14/06/15 UPDATE: DJ30 gapped lower following the weekend break, trading at 17,808 at the time of this writing.

DJ30 4hr Chart 14 June 2015

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DJ30 4hr Chart, 14/06/15

DJ30 4hr Chart, 14/06/15

We are closing 20% of the short trade at market price and shift the protective stop to the entry.

17/06/15 UPDATE: As we have anticipated, the intraday resistance at 17,964 was re-tested and remained firm. DJ30 is trading at 17,974 at the time of this writing. We are closing 10% of the short trade at market price ahead of the Fed monetary policy.

24/06/15 UPDATE: With a minor delay, DJ30 triggered the protective stop loss order at the entry. We have nevertheless ended the trade with a fair profit.

Unfolding the Dow Jones 30

As DJ30 trade is closed it can  now be accessed by all traders. Open trades are restricted to members only. We have been proving trade alerts in the Forex market since May 2014.
Unfolding the Dow Jones 30

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Unfolding the Dow Jones 30

                                         Unfolding the Dow Jones 30
Unfolding the Dow Jones 30
                                             Unfolding the Dow Jones 30

Unfolding the Dow Jones 30