Renewed market optimism following calls of a massive coronavirus stimulus package has driven the Dow Jones Industrial Average to the brink of pushing into record territory. Both bipartisan politicians and the US Treasury Secretary Steve Mnuchin have called for the passage of a new round of stimulus. Mnuchin urged Congress in a testimony to push through another $300 billion in Paycheck Protection Program stimulus and asked for restaurants to receive grants and not loans.
The Dow Jones Industrial Average is up 1.11% at the time of writing.
Technical Levels to Watch
Today’s upside move has rekindled hopes of a bullish conclusion to the daily chart’s ascending triangle. However, the price needs to break above the triangle’s upper boundary at 30101 for this to happen. A break above this level establishes new record highs for the Dow Jones. Potential upside targets are the Fibonacci extension areas at 31079 initially, followed by 32376.
On the flip side, a rejection at 30101 and break below the triangle’s lower border invalidates the pattern and opens the door towards 29255 and 28979. Additional targets are seen at 28746 and 28195.
Dow Jones Daily Chart