Dow stuck at channel resistance

Dow daily chart shows the index moved in a sideways channel from November to early January. The index suffered a bearish break but later formed a double bottom and made its entry back into sideways channel

Dow daily.png

Channel resistance is noted at 17,630 and a bullish break is needed to open doors for continuation of the uptrend.

However, I doubt we are going to see a bullish break and even if we do so it could easily turn out to be fake out since oil is looking toppish.

The entire rally following double bottom breakout was fuelled by oil rally!

Plus, Fed policymakers are turning on the heat by talking up April/June rate hike bets. Hence, odds of a bullish break appear low.

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