Courtesy of Chris Kimble
Is the Dow having a “Stare Down” with a key Fibonacci resistance level that was created by the 2007 highs and 2009 lows? Sure looks to be!
This chart looks at the Dow Jones Index on a monthly basis over the past 20-years, where Fibonacci was applied to the 2000 highs and 2009 lows.
The 261% extension level first became resistance in January of 2018. The Dow traded sideways for 19-months before it finally succeeds in breaking above this key resistance zone.
The decline earlier this year took the Dow back below the 261% level and a rising support line that was created off the 2009 lows.
The rally since the March lows has the Dow kissing the underside of both lines this month at (1).
Is the Dow having a “Stare Down” with a dual resistance level this month at (1)? Yes, it is!
It will be very interesting to what pattern the Dow creates at the end of this month, just below this test of resistance!
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