Dow Jones Triple Top at 30,000 Possible?

Published by

Written By: Mircea Vasiu

Nov 19, 2020, 13:01 GMT 13:01

Dow Jones

Summary:

Dow Jones in a consolidation area just below the 30,000 pivotal level. A move above calls for an ascending triangle, a move lower calls for a triple top.

Dow Jones continues its consolidation below the 30,000 level. Bears may argue that a triple top is in place. After all, the index did fail at the level three times in a row.

However, before calling for a bearish reversal, the price needs to invalidate some levels first. As it looks now, the Dow can break either way.

Initial Jobless Claims in Focus Today

In a little over thirty minutes, we have the Initial Jobless Claims data. If last week’s better than expected data is confirmed today, the Dow may stage another attempt to the 30,000 level.

Dow Jones Technical Analysis

In technical analysis, there is a saying that “triple tops rarely hold”. If that is the case here, the Dow may actually form an ascending triangle instead of a triple top.

More details are needed in both cases. As such, bears may want to wait for a break of the 29,000 before going short. Also, bulls may want to wait for a break of the 30,000 before going long. In both cases, a stop-loss at the other level and a risk-reward ratio of at least 1:2 make sense for both bulls and bears.

Dow Jones Price Forecast

Written By: Mircea Vasiu

Mircea, MBA in International Business graduating Magna Cum Laudae, trades for a living and contributes to various financial publications for more than six years. He writes about macroeconomics, stock indices, currencies, and most recently ETFs and individual stocks. For the past decade, he’s involved in everything trading related, mostly in the currency market, both with manual and algorithmic trading.