Dow – H&S formation on hourly, attempt shorts

Dow Hourly Chart

dow.png

Dow could possibly form a head and shoulder formation with neckline around 17,510 levels.

There is a bearish price-RSI divergence on the 4-hour chart, which adds to the odds of a move lower to 17,510. If breached it shall open doors for 23.6% Fibo level (from feb lows to Apr 2nd high) of 17,266 levels.

Thus, shorts could be build at current level of 17,720 with stop just above latest cyclical high of 17,811 and for target of 17,510 and 17,266 levels.

In case prices break above 17,811 shorts could be reversed into longs for Nov 3 high of 17,977

 

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