DJIA Struggle to Stay Above 28,000
It didn’t take long for the major indices to get back to all-time highs, as they began this shortened holiday week with a solid rally on hopes for a trade deal. The prospect of renewed economic growth and favorable monetary policy have also played some roles for the rally.
Overnight, DOW rose 0.68%, but lagged comparing it with S&P 500 and NASDAQ. Obviously, the market will continue reacting to whatever the current trade headline is - bad or good - with the relevant price action.
The H4 RSI indicator is going to test the 70% area now. This could imply an aggressive profit-taking activity for the coming sessions. The inability to keep above 28,000 will be the first sign of selling pressure. Taking out 27,675 will indicate the selling pressure is getting stronger. The next support in that case will be the 50-day SMA on 4-hour chart which has risen to 27,489.
On upside, the index seems ready to re-test the record high at 28,090. A clear break above it could extend the bullish pressure towards the upper line of daily Bollinger Bands at 28,237.
Take in mind, that the trading activity will decline in the coming days because Thanksgiving Day, and of course the market is closed on Thursday and closes early on Friday.
Overnight, DOW rose 0.68%, but lagged comparing it with S&P 500 and NASDAQ. Obviously, the market will continue reacting to whatever the current trade headline is - bad or good - with the relevant price action.
The H4 RSI indicator is going to test the 70% area now. This could imply an aggressive profit-taking activity for the coming sessions. The inability to keep above 28,000 will be the first sign of selling pressure. Taking out 27,675 will indicate the selling pressure is getting stronger. The next support in that case will be the 50-day SMA on 4-hour chart which has risen to 27,489.
On upside, the index seems ready to re-test the record high at 28,090. A clear break above it could extend the bullish pressure towards the upper line of daily Bollinger Bands at 28,237.
Take in mind, that the trading activity will decline in the coming days because Thanksgiving Day, and of course the market is closed on Thursday and closes early on Friday.
Trade closed: target reached:
Both bearish targets at 27,675 and 27,489 was reached because of the broader stock market crash at the begging of this week.
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💰 PAID SIGNALS AND ANALYSIS: t.me/Semkov
💡 If you want to know on what basis we make our entries, get in here: t.me/trendlinefreetrade