Dow Jones closing in on a breakout

The Dow Jones index is currently moving in a descending triangle, closing in on the upper boundary of the current downward channel.

If it manages to break out upwards it would be a strong indication that the current downtrend has finished.

However, if it breaks out downwards it will probably fall towards the next support lines drawn in pink.

Yorum:

We've now seen a breakout upwards of the downward channel. This is a possible sign that the correction might be over. The market stabilized quite quickly after the drop. Also the news does not seem negative at the moment.

I am carefully positive, looking to buy/hold. But I am still prepared for a smaller chance of a drop, therefore putting some tight stop losses in case it still goes south.