Greetings fellow traders,
Thought I'd pop my head up above the parapet and declare that the Dow is now ripe to start its final descent into the abyss. Any takers ?
My assumption is based on the fact that the weekly chart is still in a downtrend with the 21 week ema still acting as resistance and 9000 still waiting to be overcome. We have 2 daily closes near or at the top of the bar and a nice naked high looking suspiciously like a bull trap or false breakout to me.
My trading style dictates that this is very nearly a perfect set up for a low risk short trade on a medium term basis. I shall be looking for the first signs of a breakdown in the hourly and 15 min charts with a wide stop somewhere just above the previous days intraday high for starters.
I would welcome your feedback on this idea folks, how it could be analysed better and how if it occurs we might maximise our gains ?