Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The Dow Jones Industrial Average (DJIA) surged on Wall Street, exceeding our previous target of 39270 and reaching a new high of 39687. The bullish trend identified in our previous report continues to gain momentum.
Technical Outlook:
On the 240-minute chart, the simple moving averages (SMAs) are displaying positive crossover signals, indicating sustained buying pressure. Additionally, the Relative Strength Index (RSI) remains in overbought territory, supporting the ongoing upward trajectory.
Upward Potential:
With the DJIA trading above the previously breached resistance level of 39040, which now serves as support, the bullish trend is expected to persist. Our revised target is 39910, with the potential for further gains towards 40235.
Downside Risks:
However, traders should remain vigilant. A close below 39040 on the hourly chart could trigger a temporary pullback, potentially leading to a retest of the 38490 level.
Key Levels:
- Support: 39040, 38490
- Resistance: 39910, 40235
Important Note:
The release of high-impact economic data today, including the services and manufacturing PMI indices from major economies, could induce significant price volatility. Additionally, while the Stochastic oscillator is showing some temporary negative signals, the overall trend remains bullish. Traders are advised to closely monitor market reactions to news releases and exercise caution as risks remain high.
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: |