By Anton Eljwizat – Yesterday’s bullish movement in Dow Jones Industrial index has pushed a number of technical indicators into the over-bought territory. As I will demonstrate below, the price of Dow Jones may very well be heading for a reversal. CFD traders can take advantage of this impending movement by having their Entry Orders in place to capture this reversal.
• The technical indicators used are the Slow Stochastic, Relative Strength Index, and Williams Percent Range.
• Point 1: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.
• Point 2: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure.
• Point 3: The William’s Percent Range also supports the downward direction.
Dow Jones Industrial- 8 Hour Chart
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