‘Alternate’ AB=CD Bullish Pattern on the Dow

Major US equity benchmarks continue to outperform, recording fresh all-time highs. However, in recent moves, a mild correction is seen taking shape, one that has opened the door to a particularly interesting bullish formation on the Dow Jones Industrial Average (Dow).

As evident from the daily timeframe, price is closing in on an ‘alternate’ AB=CD bullish formation, depicted by a 1.272% Fibonacci projection ratio at 38,421—one of the simpler harmonic patterns. Should a test of this level come to fruition, buyers tend to target the 38.2% and 61.8% Fibonacci retracement ratios of legs A-D. But, in light of the uptrend in play, buyers from this level will likely target beyond these ratios in anticipation of fresh record highs unfolding.