Dow Jones technical analysis at ForexLive.com: Contrarian long oppportunity for traders?

<p>The Dow Jones Industrial Average (DJIA) is one of the most widely recognized stock market indices in the world. It tracks the performance of 30 large-cap American companies and is often seen as a barometer of the overall health of the US economy.</p><p class="text-align-start">In this Dow Jones futures video, i duscuss the technical analysis of the Dow Jones and share my perspective on the potential for a bounce in the market. I note that there has been a lot of <a href="https://ift.tt/DYyC9jV (and meaningful for many companies!) news regarding banks</a> and other factors that could impact the market. However, I believe that there is a contrarian long opportunity for traders who are willing to take a limited risk. </p><p class="text-align-start"> I present the bull channel that was broken previously, and subsequently retested. There is another retest now, and while there is a possibility of a piercing the channel on this retest (price entering the channel), I believe that it is worthwhile to target a bounce is in the very near future.</p><p class="text-align-start">I share that I will be looking look for a long opportunity in the area where the channel was broken out of, and note that the reward versus risk is favorable. I do caution traders to do their own analysis and trade at their own risk, but believe that there is a good reason to take a bet on the daily time frame.</p><p class="text-align-start">This analysis and its trade "lookout" may be right or wrong BUT IN ANY CASE, it highlights the importance of technical analysis in situations like this, where there may be a lot of over-excitement or panic based on news events. They suggest that traders who follow technical analysis may be able to identify high risk-reward key junctions where algorithms and traders may be looking to buy or sell, and take advantage of those opportunities.</p><p class="text-align-start">Visit <a href="https://ift.tt/CVUQ8Eu> for additional views and trade the Dow Jones at your own risk.</p> This article was written by Itai Levitan at www.forexlive.com.

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