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Dow Jones Rallies Higher, Trying to Secure Record High

On Thursday, the Dow Jones Index gained 221 points in the global market. The recent crisis between U.S and China trade war seems to be off the table as Trump eases his stance on new Tariffs. Moreover, the FED has also indicated they are willing to keep the interest rate unchanged for the year 2020. Dow Jones Industrial Average bounced off from the support at $28045.14. The bulls are currently eyeing for the critical resistance at $28222.67.

A daily closing of the price above that level might push the DJI index towards the next resistance at $28400.0. From that level, the bears might try to push the price down and initiate bearish correction. However, a clear break of that resistance level might result in extending the rally.

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On the downside, the DJI index needs to clear the support at $28045.14 to establish fresh selling pressure. Breaking below that level might push the Dow Jones Industrial Average towards the next critical support level at $27744.71. We might see some bullish bounce on that level, but breaking the $27744.71 might result in a sharp fall.

Eventually, the price is most like to find some strong support near the low 3rd December at $27307.71. Strong bullish rejection of that support level might bring back the Dow Jones bulls. Considering all the parameters, the overall bias for the DJI index remains bullish. However, traders are advised to stay cautious as extended bullish rally often results in a deeper correction.Download our latest quarterly market outlook for our longer-term trade ideas.

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