FX.co ★ Trading plan for Dow Jones on August 31, 2020

Technical outlook:

Dow Jones managed to reach 28,600/700 levels since its March 23 low around the 18,200 level. The index is expected to carve a meaningful lower top soon and proceed towards the 18,200 level in the next several weeks. The immediate price resistance is seen around the 29,600 level, while support is seen at the 27,526 level. A break below 27,500 would confirm that a top is in place and bears are back in control. The boundary which is being worked upon is between the 29,600 and 18,200 levels. Please note that the counter trend rally that began in March 2020, reached the Fibonacci 0.88 retracement level. High probability remains for a bearish reversal soon.

Trading plan:

Remain short, stop is above 29,600, target is open.

Good luck!