When President Donald Trump signed into law the congressional legislation 'The Hong Kong Human Rights and Democracy Act 2019' last Wednesday, Dow still managed to hold above the upper trend-line on Friday after the Thanksgiving holiday on Thursday. Dow formed a long red candlestick on Monday followed with a gap down on Tuesday.
In addition to that, the index has moved below its upper trend-line.
Since it failed to pulled away and maintained above its upper trend-line, I have no choice but to bring one of my previous scenario of wave D and E. This is very bearish.
Besides this scenario, there is another less bearish scenario that I mentioned 3 weeks ago in my article dated 16 November.
There is this possibility that Dow is forming an overlapping i-ii-iii-iv-v wave (i). Wave (ii) is expected to be a 10% or less correction to around 25,700 to 25,300 level.
.
No comments:
Post a Comment