The Dow Jones Industrial Average is still looking like a strong bull on the weekly timeframe. The candles have not yet formed a reversal pattern, there is still potential for the upside after breaking the previous top. On a weekly candle once a pin bar formation of a strong reversal Doji forms then we can talk about the potential downside. For now, the target is still the top of the channel at 28650-28700.
There is a potential for a slight retrace but price should not get much below 27300 on a long-term perspective. That will ensure structure holds well bullish. Each failure off the top of the channel was followed by a 6.60% retrace, for that to occur price has to move up to the top of the channel, IF there is a 6+% retrace, the channel and bull structure is broken and the move lower can price the Dow Jones into correction territory.
There is a potential for a slight retrace but price should not get much below 27300 on a long-term perspective. That will ensure structure holds well bullish. Each failure off the top of the channel was followed by a 6.60% retrace, for that to occur price has to move up to the top of the channel, IF there is a 6+% retrace, the channel and bull structure is broken and the move lower can price the Dow Jones into correction territory.
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