Dow Jones Eliott Wave Analysis: Expect Rise In Volatility
Alexandros Yfantis | Jun 19, 2013 04:58AM ET
DOW has most probaby finished wave 4 exactly at the boundaries of the upward sloping blue channel as shown in the daily chart below. The double bottom formation that we analysed in detail a few days ago, has given the index enough power to break above the intermediate high at 15300 and confirm our view that at the double bottom a new upward move was starting. Our view for some time has been that the downward move from the all time highs was corrective as prices declined in an overlapping form and thus the downward wave was corrective. It is crucial for this upward move, for prices to hold support at 14988 area. I expect prices to continue higher to test and eventually break higher than 15500.
The extended 5th wave in DIA is our favorite wave count. Wave (4) has ended and we currently are in the extension of wave (5) of 5. Our bullish view that the correction has ended and a new upward move starts is also confirmed by DIA. The downward correction stopped at the lower part of the upward sloping trend channel and the decline had a corrective form. On the other hand, the upward move that started at 148.31 has a more impulsive feeling. Resistance at 152.88 was taken out and we now expect prices to reach to new highs.
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