DOW Fib Levels !

Traderbtf

Guest
8 0
DOW Fib Levels for the 04th of december 2002!
Dear readers,
Good morning and thank you for coming again!

I have been away lately and am back for some more Fib Level. For those who show interest, sorry about the wait.


It’s amazing how the Dow has been reacting nicely to the Fib level. This may be due to the fact Advanced Fibonacci analysis takes into account and respond to the human emotions (currently massively present in this market).

The Dow reaction low of the 10th of October @ 7197.4 has been driving the market with an amazing force and precision.

Here is what I said from my last analysis before holidays:

“If we should keep on going up our objective point remain the 9039.22. This is calculated from the 7197.4 reaction level of October the 10th. “

Well, we did hit this Fib level on the 2nd of December and ONLY past it by 4 ticks and then pulled back straight away. This Level was the Contracted objective point (COP) for the Dow from the 7197.4 reaction low of October the 10. For the skeptical, you get this COP Level by doing:

0.618 * (the reaction low of the 24/10/02 (8558.6) minus reaction low of 10/10/02 (7197.4)) + the reaction low of the 29/10/02(8198) = 9039.22 - easy!!

Now the objective point (OP) for this 7197.4 reaction low of October the 10th is located at 9559.2 but who wants wait for that to happen now?

After we hit our COP @ 9039.22 the Dow reacted back to head down and a new reaction high 9043.3(high of 02/12/02) was confirmed by the close yesterday. So what?

Well, there is an uncompleted trade that was generated by the reaction low of November the 19th (8405.1). The COP from this reaction low was 8963.77. On the 29/11 we stood at 16pts away from it and backed down, this COP was then hit and past on the 02/12 and we pulled back down again.

* The thing is that the OP (Objective point) 9145.3 of that reaction low of November the 19th (8405.1) has not yet been hit. So, objective 9145.3 may be a pending trade. For now there is weakness with first objective @ 8913 COP (hit), second objective @ 8833 OP (hit) and 3rd objective 8703 XOP(extended Objective point) pending.

* If we break and close below the 8703 XOP the Dow is likely to head for 8338, the 0.382 retracement from the primary reaction low 7197, then to 7902, the 0.618 retracement of that same primary reaction low.

* I the Dow pushes back through 8901, I shall focus on the 9145.3 OP (Objective point) of the uncompleted trade from the reaction low located at 8405.1, then on 9438.97

The Dow may be correcting to better jump to 9145.3 or never to go back, at least for now. Watch the Levels!!!


Also for day Traders, Support is Located at: 8901, 8856, 8812, 8799, 8758, 8748, 8724, 8720, 8670, 8649, 8620, 8583, 8539, 8521, 8454, 8405, 8375, 8338, 8120, 7902 and 7585,

Thank you for listening
Traderbtf
 
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock