Dow Jones: Bullish Momentum Continues, but Caution Advised 20/6/2024

The Dow Jones Industrial Average has successfully reached our previously identified target of 38950, peaking at 38972.

Technical Outlook:

The technical outlook remains positive, with the simple moving averages providing continued support and the 14-day momentum indicator showing clear positive signals.

Upward Potential:

We maintain a cautiously optimistic outlook, as long as the index holds above the 38540 support level. Our revised initial target is now 39060, with the potential for further gains towards 39270.

Downside Risks:

However, traders should remain vigilant. A close below 38540 could delay the upward movement and trigger a bearish correction, potentially targeting 38240.

Key Levels:

• Support: 38540, 38240
• Resistance: 39060, 39270

Important Note:

The release of high-impact economic data today, including the Bank of England’s interest rate decision and the U.S. unemployment benefits claims, could induce significant price volatility. Traders are advised to closely monitor the market’s reaction to these data releases.

Disclaimer: Trading in CFDs carries inherent risks, and all scenarios are possible. This analysis is not investment advice but rather an interpretation of the current technical landscape for the Dow Jones Industrial Average.

S1: 38540	R1: 39060
S2: 38235	R2: 39275
S3: 38020	R3: 39580