DOW JONES: Hit the 1D MA200 after almost 2 months.

Dow Jones touched today the 1D MA200 for the first time since March 29th, almost 2 months after the strong bullish break-out. The 1D timeframe is technically bearish (RSI = 38.438, MACD = -67.410, ADX = 30.240), indicating that we are approaching low enough levels to justify a long term buy. However we are only willing to open a buy position as long as the 1D candles close over the 1D MA200 and target R1 (TP = 33,600).

If a candle closes below the 1D MA200, we will open a sell and target the bottom of the dashed Channel Down (TP = 32,000). Once the 1D RSI gets oversold, we will again buy on the long term, aiming at the top of the seven month Channel Down (TP = 33,900).

Keep in mind that the 1D MA200 has held and provided excellent buy signals, three times and only once on March 9th it broke.


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