DOW

Good morning

The DOW keeps going up with new highs, on the daily chart lower highs can be observed on the RSI. Could this be a sign of a breakout.

If we see a downside breakout from the apex triangle, the first piece of support sits at the recent low 19,750. The majority of decent support lies down at near 18,700.

DYOR, Good luck..

Hi Ocean,

Nice chart...

the divergence on the rsi which you have highlighted on your chart, is a bearish divergence......and therefore indicative of a top building imvho.....however, that rsi div has been present for some time and could continue to remain that way, and like your saying the dow keeps making new highs.....so must not just jump in short, based on that indicator alone...

For now, i think it's just a signal not chase these markets higher......or at least to be cautious now imvho....
having said that if the rsi breaks that t/line resistance,(i think it will) a further leg up on the dow looks likely...

To short i think a lower is the best signal, so a break below the horizontal support at 19750(ish) on your chart must go first.......

as always imvho, dyor wdik
trendfriend

Thank you Trenfriend
Taking a short or long position at the moment can be dangerous.
IMHO, the RSI divergence may indicate a trend change. However, DOW seems to be stuck in a triangle and consolidation is getting tighter implying a breakout is bound to take place soon. A breakout to the upside cannot be excluded, should this happen the DOW chart should be re-analysed.
If we see a breakout to the downside, then the targets mentioned earlier may come into play

DYOR, GL

DOW is not showing any sign of weakness.
Attached are 2 charts suggesting that the uptrend is strong, the 10 MA looks like very strong support.
Please feel free to comment.
Thank you.
DYOR, GL...

I would be very interested to hear Remo's view. I cant see what will change the trend. I have been burnt on a no. of post 20k shorts which was really quite stupid..