In my last review I was suspecting that Dow is making a bullish pattern and now it is more prominent. If that pattern works out completely then Dow may test levels above 13800 but that may not be a straight one. Few months ago Dow has failed to cross 13600 range so this time it may take more time so couple of flat days may not be ruled out for coming week. In early days Dow’s initial support is at 13500 range.
On the other hand if Dow fails to maintain moves above 13600 range then it has a good chance to drop. It looks to me that from November, Dow is trading in an upward channel and if that is true then it will not drop below around 13200 ranges. If we see Dow’s recent reversal then that also suggests around 13200 ranges (near about 50% retracement level). Here I must say that Dow has a chance to make medium term bearish pattern but for that it has to go below 12800.
NOTE: Please see the disclaimer of this blog.