Dow Jones Forecast:
Dow Jones Worth Forecast for the Week Forward
The Dow Jones trades inside attain of document ranges to begin 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 increased and buyers ponder capital allocation methods amid the shifting elementary atmosphere. Whereas yields would possibly proceed to rise and strain 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 considerations, a continued grind increased in worth suggests demand exists for the index regardless of the dangers. With that in thoughts, latest declines – probably as a result of coming finish of the Fed’s SLR– may be brief lived within the greater image.
Within the technical image, an imminent MACD crossover on the 4-hour chart would possibly 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 traces 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 way in which of additional features. The 2 obstacles commerce round 33,215 and 32,790 respectively.
Beneficial by Peter Hanks
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Ought to bearishness reignite and drive the Dow Jones decrease, preliminary help would possibly exist on the index’s February swing excessive close to 32,000. Secondary help may be provided by the gathering of technical ranges barely decrease round 31,620 and 31,150. IG shopper sentiment knowledge reveals retail merchants stay overwhelmingly net-short the Industrial Common which could counsel worth will proceed to rise since we usually take a contrarian stance to crowd sentiment.
| Change in | Longs | Shorts | OI |
| Each day | 1% | 1% | 1% |
| Weekly | 8% | -18% | -11% |
–Written by Peter Hanks, Strategist for DailyFX.com
Contact and comply with Peter on Twitter @PeterHanksFX
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