Charts: Dow Likely Seen its Peak for Now

The Dow Jones Industrial Averageis unlikely to move much higher than its current level as a long-term "diamond" pattern is signalling weakness ahead, Chris Zwermann, global strategist at Zwermann Financial, told CNBC Wednesday.

Charts: Dow Likely Seen its Peak for Now
Charts: Dow Likely Seen its Peak for Now   

"The prices for diamonds might really go down because I found a very big one," Zwermann said, referring to the technical pattern present in the Dow weekly chart.

Unless the Dow can break out of the diamond formation it faces a downward movement and could push the index close to 10,000, he said. The index closed at 10,944.72 points Tuesday after a strong session.

"It's a top formation and a possible turnaround formation … It might take one or three weeks until it breaks to the downside," he said.

The euro is likely to push higher against the dollar toward $1.4044, but then see a correction and ease toward $1.3750, Zwermann said.

Meanwhile, the German DAX index is likely to fall toward 6,255 points, and then perhaps 6,000 points, Zwermann added.