Opportunity Identified

for the curious investor

  • Home
  • About
    • Founder’s Story
    • This Blog
    • 360 Investment Research
    • The 360 Process
    • Client First Tax and Wealth Advisors
  • Insiders Only
  • Contact Us

October 15, 2015 | Posted by David Zarling, Head of Investment Research

Mega Pattern On The Dow

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

A unique pattern on the Dow Jones Industrials Average has been in the works for almost two decades. Developing since the late 90’s, this broadening formation of price is called a megaphone pattern. Just as the pattern suggests, price forms boundaries, that when connected with trend lines, form the shape of a megaphone. We can take a look at this formation in the chart below.

DOW MEGAPHONE

(click to enlarge)

As you can see, these trendlines identify important price levels on the Dow, a major U.S. largecap index worth paying attention to. When we connect the lows from the late 90’s, 2002, and 2009 we get a downward sloping trend line. When we connect the highs from 1999 and 2007, we get an upward sloping trendline. What makes this pattern significant is that price is reacting strongly to this level. In fact, just recently, price rapidly fell through it and now this 15 year old upper trendline is providing stiff resistance. Let’s take a closer look.

DOW MEGAPHONE Close-up

(click to enlarge)

As you can see, this trendline has significance. We are not interested in U.S. largecaps until this trendline is recaptured. That could happen today. It could happen tomorrow. No one knows. If anyone tells you they know where price is headed, they are fooling you. As for us, we’ll continue to let price guide us. And right now, this development carries significant risk.

As always, trade safe. We’ll keep you updated on price.


Disclaimer: Nothing in this article should be construed as investment advice or a solicitation to buy or sell a security. You invest based on your own decisions.

Filed Under: Dow Jones Industrials, Equity, Market Outlook, Pattern Recognition Tagged With: $DDM, $DJIA, $DOG, $DXD, $INDU, $SDOW, $UDOW, DIA, Dow Jones, Dow Jones Industrial Average, Largecaps, megaphone, pattern recognition, Trend Change, trendline

Get Our Research As Soon As We Release It

Receive great insight and analysis directly to your inbox.

Find Out Our Top 10 Questions to Ask Your Financial Adivsor!

Subscribe to our mailing list today. No spam - we promise!

* indicates required
Tweets by @@360Research

Recent Posts

  • How To Get Involved In The Drug Trade (It’s Not What You Think!)
  • Invaluable Market Signal From The Value Line Geometric Index
  • This Is How To Navigate Amazon
  • Get Intel Inside Your Portfolio
  • Simple Market Secret: Just Look Left

Tags

$DBO $ES_F $INDU $SH $SPX $SPXA200 $SPY $TNX $USD $USO $UUP $VIX $WTIC $XLP $XLV Ascending Triangle Bonds Bottom breakout Confluence Consolidation Cycles demand descending triagle divergence Dow Jones Energy measured move Price Resistance risk/reward risk management RSX Russia RUT S&P 500 S&P500 SPY Supply TLT Trend Change trendline US Dollar Volatility weight of evidence

Copyright 360 Investment Research, LLC - All rights reserved © 2023