Quick look: Dow approaching sideways channel resistance

Daily Chart

Dow Jones

Dow broke double bottom formation and is now approaching a sideways channel resistance at 16,900

Note that the sideways channel was breached in the first week of Jan after China’s devaluation of Yuan triggered a wave of selling in the risk assets.

The same channel’s (lower end extended) comes around 16,900. The next major resistance is 17,043 (100-DMA) and 17,194 (200-DMA).

Watch out for an intraday break above 16,900, but a failure to sustain and daily closing below the same. That kind of a candle could be a fresh sell signal

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