DOW JONES (DJIA) – Week 10 – Bearish pressure increasing.

The main stock market Indices had a strong session on Tuesday as Treasury yields backed off a bit. Dow Jones hit a record high before backing off with expectations that The House will pass the vote for the $1.9 trillion Biden stimulus bill on Wednesday.
Technically speaking, the price made a new historical high, reaching the 32180.0 level. At the moment it looks like this bullish move needs some space to breathe, as the price started to lose some momentum at the upper channel line.
We expect a bigger degree bearish pullback to take place, with a chance to find some support around the 30k level. If that area is breached, we anticipate the momentum to increase and continue towards our first target in order fill the GAP created at the beginning of November.
Trade with care.

Best regards,
Financial Flagship

Disclaimer: The analysis provided is purely informative and it should not be used as financial advice. Remember that you need a plan before you start trading; so, take this knowledge and use it as a guidebook that will ultimately help you understand the market and easily predict your next move

Comment:

The bullish momentum is still strong in every timeframe. No signs of a reversal. If the price breaks the support area together with the trendline, followed by a pullback, then the reversal is on the cards. It may take a while, but until then stay away from shorting it.
Trade with care!