More Downside for the Dow Could Be Ahead

More Downside for the Dow Could Be Ahead

The near term risk for the Dow is on the downside, says Adam Hewison of INO.com. In this free video, he describes the recent bounce as a classic Fibonacci retracement, where markets typically retrace 50-62% of their recent losses, before retesting new lows.
Regular readers know that traditionally, I have not been a big believer in heavy forms of technical analysis. However about a year ago, I adopted a simple entry and exit system based on basic technical cues after reading Winner Take All, by William Gallacher (which I’d highly recommend, by the way).

And I have to admit, I’m very grateful I did, because otherwise I would have been completely wiped out in the commodity crash that has taken place this year.

What is your experience with technical analysis? Do you view it as a critical component of your trading? I’d love to hear your thoughts in the comment section below.

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