Dow Jones makes big gains 5/12/2024

The Dow Jones Industrial Average continues to exhibit an upward trend, recently reaching a peak near 45180.

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Technical Analysis:

• Bullish Signals:
  • The index rebounded from the support level of 44785, bolstered by the positive influence of the 50-day simple moving average (SMA).
  • The Relative Strength Index (RSI) on short-term charts also provides clear upward momentum.

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Outlook and Scenarios:

1. Bullish Continuation (Most Likely):
   • A sustained break above 45235 would confirm the upward trend, paving the way for targets at 45360, with further extensions toward 45540.
2. Bearish Correction:
   • Stability below the support level of 44930 might delay the upward momentum, potentially leading to a retest of 44780. However, such a correction would not invalidate the overall bullish outlook.

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Key Considerations:

The high-risk environment, compounded by ongoing geopolitical tensions, warrants a cautious trading approach as all scenarios remain plausible.

Economic Data Impact:

The release of U.S. Weekly Unemployment Claims today could introduce significant market volatility, influencing the index’s movements.

Risk Management:

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: 44935	R1: 45235
S2: 44755	R2: 45360
S3: 44635	R3: 45540