Looking at the daily chart, we can see DJI broke 26,951 the previous All-Time High made on 3 July 2019. Over the last 3 weeks, price held firmly above the level and formed a consolidation zone between 27,050-27,400.
This is a sign the market is waiting for the acceptance of price level from market participants. If we see another break of most recent high to the upside, this means the market could continue its uptrend and we would look for a retest or a trend continuation for entry. If price decides to retrace and falls to 26,750 structure support level, we could go to the lower timeframe and look for a reversal set up.
On the other hand, if we see price push and close below 26,750 structure support level, this could mean the market does not accept the previous break out. We would expect to see a deeper market adjustment to 26,000 level and a wider and longer consolidation zone. For the DJI to remain its short-term uptrend, price should not falls below the lower bound trend line.
Gordon @GoreStreetTrading
This is a sign the market is waiting for the acceptance of price level from market participants. If we see another break of most recent high to the upside, this means the market could continue its uptrend and we would look for a retest or a trend continuation for entry. If price decides to retrace and falls to 26,750 structure support level, we could go to the lower timeframe and look for a reversal set up.
On the other hand, if we see price push and close below 26,750 structure support level, this could mean the market does not accept the previous break out. We would expect to see a deeper market adjustment to 26,000 level and a wider and longer consolidation zone. For the DJI to remain its short-term uptrend, price should not falls below the lower bound trend line.
Gordon @GoreStreetTrading