DJIA Gann Fan
I'm not expert on use of Gann Fan lines, but have been tracking the Dow against a fan set on the 2009 low and posted on this 16th July 2016, which is worth updating.
One of the concepts of Gann Fan lines is that price tends to unfold along particular lines which act as support (or resistance) and once it breaks through will move to the next fan line.
The Dow has moved quite well between lines on the weekly chart with highlighted touches in yellow below.
I found it particularly interesting after expecting the Dow to peak at the Olive 1 x 3 line back in August based on a number of targets clustering there. It pulled back short of this so I thought maybe the fan wasn't valid. However, it's now spiked back up to the Olive line and should coincide this week at potentially Dow 20,000 and at the same time as US Fed interest rate decision. Will be quite extraordinary to me if this turns out to be the market top.
I have some other analysis that provides for a pullback to now support around 19162 level and some higher targets. So a couple of scenario's are reasonable technically. Nevertheless, we seem to be in the final topping stage, just not clear when and what level. The Gann Fan gives one strong scenario.
View attachment 374246
(20min delay)
