The Dow Jones index in the United States had a remarkable comeback from the recent dip. It made new all-time highs as investors keep bidding for stocks in lack of other market opportunities given the low yields across the financial markets.
Yesterday’s speech from Jerome Powell, the Fed’s Chair, did not create the expected market volatility on the stock market. As such, all financial assets consolidated levels, the U.S. dollar included. While the Dow is clearly in a bullish trend, given the recent higher highs and higher lows series, bears may still want to try to go short on a move below yesterday’s lows.
The inflation or the CPI in the United States, released yesterday, failed to bring the much-expected volatility. Nevertheless, the Dow move higher about a hundred points on the release, only to give the gains back shortly after.
Dow Jones Technical Analysis
As mentioned earlier, the technical picture looks bullish. More precisely, as long as the Dow remains inside the rising channel, bullish price action prevails. However, a move below yesterday’s lows implies that the higher lows series is broken. As such, bears may want to short on such a move with a stop at the highs and a take profit that respects the 1:2 rr ratio.
Dow Jones Price Forecast