The Dow Jones has gained more than 1% over the last three trading sessions and is now attempting to consistently reach price levels not seen since March of this year. The bullish bias has remained steady as investor confidence has recovered, driven by ongoing economic negotiations between the United States and China. The potential easing of trade tensions has helped stabilize market sentiment in the short term, and if this trend continues positively, consistent buying pressure could emerge in the index's movements over the near term.
Sustained Uptrend
Since early April, the Dow Jones has maintained a steady upward trend, and so far, selling corrections have been insufficient to break that trend. However, price action continues to face resistance at the trendline, and if this ongoing neutrality persists, the trendline could come under pressure in the coming sessions.
MACD
The MACD histogram continues to oscillate very close to the neutral 0 line, indicating that momentum between the moving averages remains balanced. As long as this behavior persists, the current neutral tone could become even more pronounced in upcoming sessions.
ADX
The ADX line remains below the neutral 20 level in the short term, signaling that average volatility has been steadily decreasing over the past sessions. This has further intensified the market’s neutral tone near the current resistance zone where the price is trading.
Key Levels:
Written by Julian Pineda, CFA – Market Analyst
Sustained Uptrend
Since early April, the Dow Jones has maintained a steady upward trend, and so far, selling corrections have been insufficient to break that trend. However, price action continues to face resistance at the trendline, and if this ongoing neutrality persists, the trendline could come under pressure in the coming sessions.
MACD
The MACD histogram continues to oscillate very close to the neutral 0 line, indicating that momentum between the moving averages remains balanced. As long as this behavior persists, the current neutral tone could become even more pronounced in upcoming sessions.
ADX
The ADX line remains below the neutral 20 level in the short term, signaling that average volatility has been steadily decreasing over the past sessions. This has further intensified the market’s neutral tone near the current resistance zone where the price is trading.
Key Levels:
- 42,700 points: Current resistance zone, aligned with the recent multi-week highs. This level could become the base for a broader short-term consolidation.
- 43,800 points: A level not seen since February of this year. A return to this area could reinforce the bullish bias and support a more sustained upward trend.
- 41,000 points: A critical support level that coincides with the 200-day simple moving average. A move toward this level on the downside could threaten the current bullish structure.
Written by Julian Pineda, CFA – Market Analyst
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.