The false breakout in Dow Jones since 29 Apr likely to attract more supply to tank the index to test the support level around 23000. Short term traders can ride on the bearish trend to trade based on identifying support and resistance levels for short term swing trading.
The Dow futures dropped more than 1% during the London session now. It is expected Dow index to gap down at the open. A rejection between 23600–23700 could be a good short entry as the area should provide resistance and attract some more sellers to come in.
Below are the potential short setup for Dow Jones index (DJI) for trading session on 4 May 2020, with a potential reward to risk ratio of 2.5.
Entry: short limit order at 23600
Stop loss: 23850
Take profit: 22950
The Dow futures dropped more than 1% during the London session now. It is expected Dow index to gap down at the open. A rejection between 23600–23700 could be a good short entry as the area should provide resistance and attract some more sellers to come in.
Below are the potential short setup for Dow Jones index (DJI) for trading session on 4 May 2020, with a potential reward to risk ratio of 2.5.
Entry: short limit order at 23600
Stop loss: 23850
Take profit: 22950
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