Chart of the day

DJIA mini futures are testing the upside resistance of 38800. If we get a break above this level we could see an extension higher to 39460. A rejection here and a break below the rising wedge 38400 will lead to a deeper pullback to 36500.

Only in the case of a clear confirmed break above 38800, will lead to an immediate upside extension, A break below 38400 is required for a pullback to 36500.

Short trades could be opened here with a stop loss above 38700 upon a break below 38400. Long trades should be opened only upon a confirmed break above 39500. This can be traded with options as well.