Technical Analysis

DJIA: Dow Rally Extends to Recent Two-Month-Highs

Dow Jones Speaking Factors:

– The 2019 restoration rally continues, serving to to additional eradicate prior December losses. Costs within the Dow are actually approaching the 88.6% retracement of that December bearish transfer.

– The consistency of the present rally has been pretty sturdy, because the Dow is at the moment engaged on its seventh consecutive week of beneficial properties. However, that 88.6% retracement talked about above could be very close by one other potential resistance degree of curiosity, begging the query of how lengthy and for the way far may bulls be capable to push with out some factor of pullback.

– DailyFX Forecasts on quite a lot of currencies such because the US Greenback or the Euro can be found from the DailyFX Buying and selling Guides web page. For those who’re seeking to enhance your buying and selling method, try Traits of Profitable Merchants. And for those who’re on the lookout for an introductory primer to Forex, try our New to FX Information.

Do you wish to see how retail merchants are at the moment buying and selling the US Greenback? Try our IG Shopper Sentiment Indicator.

Dow Bulls Proceed to Push

The primary quarter of 2019 has been a stark change-of-pace from the bearish value motion that had developed in US shares throughout This fall. However because the door has opened within the New Yr, a little bit of calm has taken-hold and fairness bulls have gone proper again to work. Within the Dow, costs are at the moment engaged on their seventh consecutive week of beneficial properties after setting a contemporary 15-month low on the day after Christmas. Costs have posed a robust restoration from that December sell-off as bulls are pushing costs up in direction of the 88.6% Fibonacci retracement of final month’s bearish transfer.

DJIA 4-Hour Value Chart

djia dow jones four hour price chart

Chart ready by James Stanley

Round that 88.6% retracement is one other merchandise of curiosity, as that degree is confluent with the 14.four% retracement of the post-election run within the index. This creates a 23-point zone of curiosity that runs from 25,572 (14.four% of the post-Election transfer) as much as 25,595 (88.6% of the December sell-off); and whereas that resistance potential might not but be engaging sufficient to start plotting for reversal themes, given the consistency of latest bullish momentum, it might be appeared to as a point-of-pause for this present topside run.

Dow Jones Weekly Value Chart

djia dow jones weekly price chart

Chart ready by James Stanley

Close to-Time period Technique

On a shorter-term foundation, for merchants wanting on the lengthy facet of US shares, there might quickly be a workable backdrop within the Dow. The 25ok psychological degree supplied a little bit of resistance-turned-support final week, and this comes-in across the 76.four% retracement of the December sell-off. As consumers had been serving to to cauterize assist round this degree on the finish of final week and the start of this week, a sequence of higher-lows developed forward of that push to contemporary two-month-highs. A pullback in direction of this space, with respect of prior assist at this week’s swing-low, can re-open the door for bullish short-term methods within the index.

Dow Jones Two-Hour Value Chart

DJIA: Dow Rally Extends to Fresh Two-Month-Highs

Chart ready by James Stanley

You might also be keen on:

Day Buying and selling the Dow Jones: Methods, Ideas & Buying and selling Alerts

To learn extra:

Are you on the lookout for longer-term evaluation on the U.S. Greenback? Our DailyFX Forecasts for Qfour have a piece for every main foreign money, and we additionally provide a plethora of assets on USD-pairs corresponding to EUR/USD, GBP/USD, USD/JPY, AUD/USD. Merchants may also keep up with near-term positioning by way of our IG Shopper Sentiment Indicator.

Foreign exchange Buying and selling Sources

DailyFX gives a plethora of instruments, indicators and assets to assist merchants. For these on the lookout for buying and selling concepts, our IG Shopper Sentiment reveals the positioning of retail merchants with precise stay trades and positions. Our buying and selling guides deliver our DailyFX Quarterly Forecasts and our High Buying and selling Alternatives; and our real-time information feed has intra-day interactions from the DailyFX crew. And for those who’re on the lookout for real-time evaluation, our DailyFX Webinars provide quite a few periods every week in which you’ll see how and why we’re taking a look at what we’re taking a look at.

For those who’re on the lookout for academic data, our New to FX information is there to assist new(er) merchants whereas our Traits of Profitable Merchants analysis is constructed to assist sharpen the talent set by specializing in danger and commerce administration.

— Written by James Stanley, Strategist for DailyFX.com

Contact and comply with James on Twitter: @JStanleyFX


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