? US30 Keeps Bullish Outlook Above 27,840 Support ?

Dear traders,

the Dow Jones Index (DJI) is close to the top of the uptrend channel. The recent bullish momentum, however, is probably a wave 3. This makes more upside likely. What’s next for the US30 chart considering the Jackson Hole Symposium?

US30

Price Charts and Technical Analysis

The DJI is expected to confirm a new high once more. This would complete a wave 5 (green) and a wave 4 retracement is likely. Any wave 4 pullback should respect the support zone (blue box). There is a confluence of support with Fibonacci levels, the bottom of the channel and the long-term moving average. 

A break below the channel and especially a break below the top of wave 1 (orange) invalidates (red x) the bullish outlook. The main bullish targets are at 28,750, 29k, 29.5k and 30k. An immediate continuation is possible if price stays above the top of the wave 1 (blue box) – see image below.

The analysis has been done with SWAT method (simple wave analysis and trading).

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Good trading,
Chris Svorcik
Elite CurrenSea