Dow Jones Making Another Attempt At New Highs Above 30,000
The Dow Jones Industrial Average is up by 0.53% at the time of writing, after overcoming a lower open this Tuesday. US markets are under pressure as surging coronavirus cases, simmering US-China tensions, and Tesla’s large share sales are stifling any attempts by bulls to take over the market space.
The attention of investors centers primarily on the proposed stimulus package. Feelers from the US Congress are that the stimulus package may not be as robust as March’s package, which is a disappointment to market players expecting more. This is perhaps why the Dow’s upside is struggling to gain sufficient momentum to break a critical resistance level.
Still, the momentum lies with buyers, even as an independent study confirmed the safety of AstraZeneca’s coronavirus vaccine candidate.
Technical Outlook for Dow Jones
Today’s price outlook focuses on the ascending triangle, whose upper boundary is now under threat from the advancing daily candle. A successful break of this area not only takes the Dow into potentially record territory (pending the break of last week’s all-time high), but also targets the 31158 price level (78.6% Fibonacci extension from the swing move of 13 May to 2 September.
On the flip side, any decline that results from lack of follow-through buying that takes out the triangle’s lower boundary, opens the door towards the 29255 support line, with 28979 and 28746 lining up as additional targets to the south.