Dow Jones hits a record high at 27514.9 on Monday and gained 125 points despite the ongoing crisis of the U.S China trade war. On 4th November, DJI Index topped at 27514.9 followed by the breakout of a inverse head and shoulder pattern in the 4-hour chart. The low of 24th September at 26716.5 acts as the left shoulder, low of 3rd October at 25756.2 acts as the head and the right shoulder is at 26722.3 which is the low of 24th October. DJI Index peaked sharply after breaking the neckline resistance at 27092.0. Usually inverse head & shoulder represent strong bullish reversal signs, so we might see a strong attempt from bulls to push the price of DJI index further north.
If the bulls manage to break above the high at 27503.5 created on November 4th, Dow Jones price might head towards the major psychological level at 27600.00. And breaking above this level might boost the investors’ confidence which is a positive sign for Dow Jones. On the downside, failing to clear the high of 4th November at 27503.5, might push the Dow Jones Industrial Average towards the broken neckline at 27092.0. This level might offer strong support to the bulls which might revive the bullish tone of the Dow Jones market. Considering the overall technical parameters, the overall outlook for Dow Jones might remain bullish in the upcoming week. However, we might have some bearish correction before Dow Jones Index starts rallying.Download our latest quarterly market outlookfor our longer-term trade ideas.
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