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Dow is Riding on Extended Wave C

Dow is riding on extended wave C from 21028 lower top that so far extended to its 123.6% Fibonacci expansion at 20549.

Tuesday’s strong fall completed Failure Swing pattern on daily chart that signals further downside.

The wave could travel towards 20492 and 20401, its FE 138.2% and 161.8% respectively, driven by building negative sentiment, weakening daily studies and strong bearish signals on reversal of weekly RSI / slow stochastic from overbought territory.

We are looking for fresh negative signal on daily close below broken support at 20607 (Fibo 38.2% of 19713/21160 upleg that now acts as initial resistance), for extension of the third wave.

Daily Tenkan-sen / Kijun-sen bear-cross at 20790, marks upper trigger, break of which is needed to neutralize existing downside risk.

Res: 20607; 20736; 20790; 20848
Sup: 20549; 20492; 20401; 20266

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
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