Dow’s bearish ‘symmetrical triangle’ remains in force

[link to www.marketwatch.com]


The Dow Jones Industrial Average’s early attempt to wipe out the bearish “symmetrical triangle” pattern failed miserably, suggesting a breakdown, and eventual new lows, may be looming.

Symmetrical triangles often appear after a sharp move in either direction. Chart watchers view them as continuation patterns, or pauses to refresh, as breakouts usually occur in the direction of the previous trend. In the Dow’s case, that would mean a move down.

If the Dow were to close below the lower barrier of the triangle, which will extend to about 16,200 on Thursday, the target becomes the 14,000-to-14,200 range.

Last Edited by Trumpelstiltskin on 09/10/2015 08:38 AM