DJI Technical Analysis

• DJI makes a deep and strong bearish retracement
• Bullish bounce however erases all losses
• DJI is now approaching a key resistance zone
• A bearish bounce could start an ABCDE triangle pattern

Daily Chart DJI

• The uptrend is probably a completed wave 3 (pink).
• The bearish retracement made a strong bullish bounce at the support zone (purple).
• Price action is now approaching the previous top and resistance zone.
• Price is also close to the strong 78.6% and 88.6% Fibonacci resistance levels.
• Price action is expected to make a bearish bounce at the resistance.
• A large bearish ABCDE triangle chart pattern could take place.
• The triangle would complete a wave 4 (pink).
• A new uptrend is expected (green arrow) to take place after the triangle pattern is completed.

4 Hour Chart DJI

• The DJI is now moving higher after breaking above the resistance trend line (dotted orange).
• A bull flag pattern (grey lines) could take place but a final push up is expected (green arrows).
• A bearish bounce at the deep Fibonacci levels and resistance zone is likely.
• This could complete an ABC (green) pattern within wave B (orange).
• A bearish decline could be part of a wave C (orange).
• The waves B, C, and D of a triangle pattern usually respect the 78.6% or 88.6% Fibonacci levels of the previous price swing.
• The wave E could stop and revert at any Fibonacci level.
• A break above the top or below the bottom invalidates the expected contracting triangle chart pattern.
• An uptrend continuation is expected once the ABCDE triangle chart pattern is completed.