Looking at the hourly chart, DOW Chemical (DOW) has followed a trendline from its low on March 9. It started as a support line that became resistance on March 20. A new support line formed on that day that is almost parallel to the old support line.
The price broke this second support line on March 27. As soon as it broke, the trading turned sideways for the last two hours of the day, and into after hours trading. The trendline dictated that it should have closed above 9.20, but it closed at 8.96, and went slightly higher to 9.02 in after-hours.
I am having a hard time with Fibonacci on this one because DOW hasn't traded at this level for 20 years. There appears to be a 61.8% retracement level at 8.78, but I'm not sure how useful it is.
The previous low was 8.36 on March 25, with another area of support at about 8.50.
I will use 8.36 as the stop limit.
I will make sure to get up early tomorrow and watch this one in pre-market.
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