Dow Jones attempts to complete a harmonic formation – Technical Analysis – 19-10-2015

The bullish trend dominates the Dow Jones Industrial Average Index recently, supported by the positive moving average 50, reaching 17122 resistance level that represents 61.8% Fibonacci for the bearish wave from 18332 to 15165, and we should note that the index is trying to complete forming Gartley harmonic pattern, moving within the fourth and last wave of this pattern, which targets move rise supported by the positive signals that come from the relative strength indexes.

Therefore, we expect to rise in the coming periods, targeting 17585 resistance level that represents 76.4% Fibonacci level for the above mentioned bearish wave, and breaching 17122 level will confirm the suggested scenario, while we should be cautious when reaching our target, as it forms critical resistance areas.