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Dow Jones Retests Resistance

Morning traders,

Dow Jones is attempting to retest the resistance cluster. Price has reached the 200EMA and is close the the previous resistance zone and trendline. This will an important time for the index as it can show a bullish stance if it smashes through this zone and continues up breaking the other resistance points.

On the other hand, if it falls short of gaining strength and momentum and selling starts to increase then we could see price retesting the recent lows and a break below these points will no doubt bring on further lows.

All the while price stays within the 2010 high and low means the bulls and bears are fighting it out and no one is winning thus producing a trading range. At some point the range will be braoken and price will restart a trend but until then it is best to stand aside.

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Good trading...

Javid Shaik



Disclosure: No position