1st blog post of the new year.
D1 line chart
For Dow jones, price is currently perched at a support confluence.
We can see from the candleline chart as such:
1.Price reacts hard from 17000 psychological level
2.this is also f5 50% retracement of the upmove.
3.price seems to have difficulty breaching the 2 months low support
4.a trendline support is holding the price now.
5.forming 2 days of hammer.
Flying buddha mean reversion
From the 2nd chart it becomes apparent that there is a flying buddha candlestick formation, suggesting an upmove is imminiment, propelled by the need for price for a mean reversion play. Hence 2 TP level are suggested:
1- to play off from the mean reversion play
2- the likelihood that the larger bullflag will materialize and hence at the top of the flag.