Dow Jones Worth Forecast for the Week Forward

Dow Jones Forecast:

Dow Jones Worth Forecast for the Week Forward

The Dow Jones trades inside attain of file ranges to start out the week regardless of a reversal decrease following final week’s Fed assembly. The Industrial Common continues to outperform the Nasdaq 100 as Treasury yields tick larger and traders ponder capital allocation methods amid the shifting basic setting. Whereas yields may proceed to rise and stress the Nasdaq additional, the Dow Jones has benefitted from the altering panorama making it a super candidate for potential bullish publicity.

Dow Jones Worth Chart: 4 – Hour Time Body (June 2020 – March 2021)

Additional nonetheless, few issues are extra encouraging from a technical standpoint than buying and selling inside attain of all-time highs. No matter potential headwinds and cited issues, a continued grind larger in worth suggests demand exists for the index regardless of the dangers. With that in thoughts, latest declines – doubtless as a result of coming finish of the Fed’s SLR– may be brief lived within the larger image.

Within the technical image, an imminent MACD crossover on the 4-hour chart may sign additional features are forward so long as the sign line is overtaken whereas worth stays above the 200-period exponential transferring common and the 2 strains stay beneath 0. Because it stands, resistance is quite sparse with solely the index’s prior highs and an ascending trendline from June standing in the best way of additional features. The 2 obstacles commerce round 33,215 and 32,790 respectively.

Ought to bearishness reignite and drive the Dow Jones decrease, preliminary assist may exist on the index’s February swing excessive close to 32,000. Secondary assist may be supplied by the gathering of technical ranges barely decrease round 31,620 and 31,150. IG consumer sentiment information reveals retail merchants stay overwhelmingly net-short the Industrial Common which could counsel worth will proceed to rise since we sometimes take a contrarian stance to crowd sentiment.

–Written by Peter Hanks, Strategist for DailyFX.com

Contact and comply with Peter on Twitter @PeterHanksFX