Participant

DOW JONES index (DJIA) has reached a historically high at 18284, this level was touched on March 2. The price has tried to approach this level again last week but wasn’t able to reach the highest high. As you can see from the Weekly chart, we have a bearish candle for this week and the price can decrease further. The price is on an uptrend on long term, we have an ascending channel on Weekly chart. The price wasn’t able to test again the channel’s resistance, this can be a bearish signal on short and medium term. Maybe the price will decline to test the support of the ascending channel. The MACD indicator shows a bearish divergence on Weekly chart.

djia

I’ve draw an ascending pitchfork on Monthly chart, the price was reached / tested the upper median line (UML) and maybe we’ll have a bounce back and the index will decrease in the next period.

djiam

 
Participant

Looks like a classic pitchfork. I cant see from your chart though where the support level is because numbers are too tiny. how far can it fall in the medium term?

 
Participant

Yes is a classic pitchfork. If the price will close below 17620 then is expected a bearish momentum, the price can decrease towards 17030 or even lower at 15851.

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