DJUSCH Dow Jones US Chemicals Index Weekly Chart Overbot Rising Wedge Potential M Top

DJUSCH Dow Jones Chemical Index weekly chart shows the overbot conditions and rising wedge that forced some negative action and now price has fallen thru the lower rail. That pesky RSI, however, has placed a higher high and it wants to see price come up again. Thus, the chart would be a good candidate for an M Top forming, or a right shoulder of a potential H&S. At the time of the matching high in price, say a month ahead, the RSI should line up with negative divergence and that would provide the all clear for extended downside ahead.

330 is important support and will give way at some point. Sideways to sideways down as the weeks and months move along. DD, DOW and PPG charts follow this same general idea.  The chemicals, resins, plastics are the building blocks of any recovery thus, with the chemical chart profile rolling over, what does that say about the underlying economy? This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.