Dow Jones looking bearish
Some bearish technical factors are developing in the Dow Jones.
On the daily chart, the Dow's 100 day MA has just crossed under the 200 day MA. The price of the Dow tried to break up and out through the 200 day MA and bounced downward, acting as resistance.
Secondarily, the price of the Dow also is bouncing down off of the trend line established from the triangle pattern I drew.
Volume is still high, so a strong sell off could happen at any time.
Expect the Dow to break down lower from this triangle pattern. Lower lows are likely coming.
How can I take action?
If you are a beginner or have a low risk tolerance, I would recommend sitting this out and just watch and wait to see how the market develops.
If you have some experience in option trades, this may be a good opportunity to buy a put option on the Dow. However, for triangle patterns, it is recommended to wait until the price breaks out of the pattern in one direction or the other. Remember, Robinhood offers a great free platform for options trading.
Keep in mind, option trades are extremely risky and extremely volatile. With a volatile market, these trades become even more bipolar. You'd better have a big risk appetite and a strong stomach.
Thanks for reading!
Disclaimer: I am not a financial advisor. The articles that I write are for educational purposes only. Do your own research and hold yourself accountable for the investments that you choose to make.
Check out some of my most recent articles, your support is much appreciated:
Why buying a home is a terrible investment
Bitcoin: Bear Market Woes
Bitcoin on the move
Are we approaching a 1929-like stock market crash?
The Most Effective Way to Invest in the Stock Market
Why Saving Cash Will Make You Poor
Intelligent Investing: Becoming a Shrewd Investor
How Do Gold and Silver Fair During Asset Deflation and Economic Recessions?
Wyckoff Logic: Finding Entry into a Market
Bitcoin: Testing Major Resistance
Yamana Gold (AUY): An Undervalued Stock with a lot of Potential
The Case for Precious Metals and Mining Stocks
Are you a trader? Do you hate paying brokerage fees and commissions? Sign up for Robinhood using my link:
http://share.robinhood.com/micahm18
Robinhood is the first zero fee stock market broker that offers free option trading, crypto trading, and much more.
1 in 150 chance of getting a Facebook, Microsoft, or Apple Stock
1 in 90 chance of getting Ford, snapchat, or AMD stock
100% chance of getting a free stock
Robinhood... Taking from the rich, giving to the poor...
Follow me on social media:
