Last week I was expecting that DOW may test 12700 level and if it reverses then its resistance will be at around 13000 level.
In past week I was talking about a pattern which is clear now. But that does not guarantees that DOW will start dropping more from Monday. I think that there is a chance that DOW may test higher levels, as indicators are also showing oversold zone. Therefore the initial resistance is at 13000–13050 level. Here I must say that there is a chance that DOW may test 13300–13350 level in the upside in coming future.
On the other hand if the bearish figure acts then DOW can move up to 12100 level but it may take time for that. I will not be surprise if it moves around 12700 to 13000 levels in early to middle of the coming week. I think for bearish pattern, emphasis should be given at level below 12600.
I don’t know for sure that whether DOW is going to react on the bearish pattern or it will break 13100 level and test 13300–13350 in the upside to built a new positive pattern (which looks to me in the early stage). So for this moment I think macros can help us in this matter.
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