Last week, I made a trading call to my readers to but the Dow Jones 30 Index stating the reasons in this post .
The Dow Jones has now rallied quite nicely . I bought in at around 16505.50 and it is now at 16831.00.
It is currently giving me a profit of over $1, 600.00. Please see the screenshot below:
I wanted to inform you of the take profits to set should you have taken this trade too.
The distance between the neckline on the double bottom and the lows is about 1,000 points .
Therefore a reasonable target for profit taking would be to add 1,000 points to the neckline entry.
The neckline entry is about 16454. Adding 1,000 to that gives 17,454. To be safe, you can set it at 17,400.
By the way , I am also long the GBP/USD pair as you would have also seen. I would have made the call too but I also want you to learn how to read the markets yourself.
If you have any questions, please drop them in the comment box.