Dow Jones Resistance Holds via Large Engulfing Bar | Jan 21st

Dow Jones Index – Resistance Capped Offering Range Play
After making a third attempt to breach the yearly highs at 16560, the Dow Jones ran into heavy sellers today forming a large engulfing bar. This sell-off keep the consolidation and range in play, offering a buy setup on the bottom of the range. We’ll look for a small buy play on the bottom of the range around 16235 with a tight stop below. Upside targets are 16400 and 16550. A 4hr or daily close below the lows would test buyers around 16150.

dow jones large engulfing bar consolidation range 2ndskiesforex

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  • Chuks

    Looks to me like a very good resistance and price action since last week indicate a firm rejection is in the cards. Today’s close also suggests the same thing and I do believe a more robust slump should be expected. Using the Daily fibonacci analysis tool, it does seem ready for a run at 15602.90 or a little lower I will be looking to buy around that level. A short at current rate is also possible like you suggested