The Dow Jones Industrial Average is up more than 260 points as of the time of writing, as the rollout of coronavirus vaccines in the US has led to a surge in stocks listed in the travel and hospitality sectors.
The buyout offer from AstraZeneca for Alexion Pharmaceuticals is also proving to be exciting for investors in the US stock market. Alexion is up 1.78% this afternoon after AstraZeneca offered to buy the company for $39 billion.
Images of vaccines being transported from Pfizer’s Global Supply facility in Portage, Michigan, dotted the internet yesterday. Those who are at the greatest risk of contracting the coronavirus infection will receive the first doses.
Today’s bullish open to the Dow Jones sends the index to a new record high at 30327 currently, with a significant likelihood of this record being breached as the trading day unfolds.
Technical Levels to Watch
Today’s bullish open violates the ascending triangle once more. It allows the Dow to aim for the next projected upside target at 31158 (78.6% Fibonacci extension from the swing motion of 13 May to 2 September. This move would require two successive closing penetrations above the 30101 price level, where the upper edge of the triangle sits.
On the flip side, failure to confirm the breakout could stall the push to the upside. It would take a breakdown of the triangle’s lower border to target 29255 in the first instance, with 28979 and 28746 lining up as additional support targets.
Dow Jones Daily Chart