Now, there are two possibe moves on the Daily charts.
One scenario is that DJIA is forming a triangle formed by line ABCD and line 45.
So, it could go upto point C, face resistance and then turn down. So, point C is a resistance point.
Another alternative is that the average is in a parallel channel formed by line 123 and line 456. So, it is also possible that the stock can go upto point 2 and face resistance there.
So, point C and Point 2 are two important resistance points.
Let us see what the weekly charts say about the market.
In the weekly chart, the stock is still in a narrow triangle range shown by the blue lines and we can know the trend only after it breaks out. It can break out above or below the triangle.
Notice that 10,000 is a very important resistance level. If the stock goes below 10,000 and breaks the triangle, then the long term trend is downwards.
Till the breakout occurs in the upwards or downwards direction, we will be in a choppy market.
