Not much to say, I know it’s not the end of the month yet but I wanted to share the Dow Jones Industrial Average Expanding Triangle to you in a monthly chart. I know the monthly chart isn’t valid till the end of the month, but…the pattern in play is taking form more and more all the time. As an investor or a trader, the pattern in play is king (or queen) and the decisions you make have to be based on the patterns in play.
The last post I wrote I had mentioned that I wasn’t a buyer at these levels and I’am still not a buyer. The only thing I’ve been looking at are the gold miners. I didn’t post a chart of the HUI index only because that hasn’t change much, other than the fact I should have mentioned that the price of the HUI index is at the 50% Fibonacci retracement level from the high in 2011 and the low in 2000, It’s a good setup, there’s still time yet to fill your boots. I still think the HUI index is going to tag the area of around 315 in the index. Click here http://www.swingtradingforecast.com/hui-gold-bugs-index-buy-signal-march-6-2013/ and check it out.
The next pivot point dates are still the beginning of April and the beginning of May. I can’t come up with a price estimate of the Dow Jones for those dates, it’s not clear. Right now I know one thing for sure, I don’t feel like grabbing the last dime off the road in front of the steam roller.
You’ll note in the chart of the Dow Jones a possible target based on Fibonacci where the present channel intersects. That target is for the summer of 2015 at 16,653. It’s too early to forecast the time and price level in 2015, but the possibilities are there based on the information we have today. The nice thing about this expanding triangle is the fact that there’s still time for those of you who aren’t prepared for the eventual retracement to the down side…5500…
Also the other nice thing about a triangle is that it’s a continuation pattern. If the pattern holds true to it’s nature and tags the 5500 area (the bottom white trend line), the price of the Dow Jones Industrial Average would go up up up. There is one downside to this expanding triangle, sometimes they are tops too…otherwise known as the megaphone top. For now we’ll call it an expanding triangle.