DOW Rebound From Support Zone After Strong Move Down


Published On: 22 April 2024, 9:50 AM | Jeraldine Tan, Senior Dealer

Key Entry Price Pivot(s):
  • 38,128 (most recent high)
Recommended Trade:
  • Long at 38,133
  • Stop Loss at 37,233 (900 pts)
  • Take Profit #1 at 39,133 (1000 pts)
  • Take Profit #2 at 39,833 (1700 pts)
Alternative Case:
  • Short at 37,233
  • Stop Loss at 38,133 (900 pts)
  • Take Profit #1 at 36,233 (1000 pts)
  • Take Profit #2 at 35,833 (1400 pts)
Remarks:
  • DOW had reflected a strong move down to recent support zone after Israel-Iran geopolitical tension
  • Overall trend is still up while the geopolitical tension seems to be easing
  • Recommended trade is a bullish continuation to the upside with a roughly 1:1 risk reward for the first profit target at which traders can choose to reduce their position and then move their stop to breakeven to ride the market further to next profit target
  • Alternative case is presented for traders who rather want to go short with a view that market is too high and geopolitical tensions would more likely deteriorate from here

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