Dow Chemical (DOW), has been living with sharks all year - the Harmonic type. Since late January, the chart below shows the Bearish Shark playing out. In mid May it went above the Potential Reversal ZONE (PRZ) and came back down through by the end of the month. The reversal has been playing out and it is now at a inflection point. Last week it hit a 61.8% retracement of the range of the Shark and held. This is a stall at the target for the reversal. The Relative Strength Index (RSI) continues to look lower, while the Moving Average Convergence Divergence indicator (MACD) is the key.
So what next? A bounce here over the 50% retracement and 100 day Simple Moving Average (SMA) at 32.58 triggers a long entry looking for move higher to resistance at 34.30. And then the previous high. But a breakdown below the 31.86 level at the 61.8% retracement has a target lower at 29.52, a full retracement and the Measured Move at 29.50 coincides. Two signals, two plays. Take what it gives you.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Dow Is Infested With Sharks
Published 07/02/2013, 04:15 AM
Updated 05/14/2017, 06:45 AM
Dow Is Infested With Sharks
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