A strong weekly rally saw price break resistance at 17600 and close above.
The Daily also posted a very strong bullish engulfing candle with a 350 pip move. This generated enough momentum to break the resistance level in the following day.
The Daily MA's are bullish, whilst weeklies are approaching a possible crossover to the upside.
I expect DOW to reach an area of resistance around 17800, with a pullback to the 17600 support before rallying further up to 18100. Two scenarios will take place at this point; either we'll see price push past this resistance level and test the all time highs. Or we'll see price exhaustion at this point, followed by a pullback before the next rally up.
I am remaining bullish on the DOW for the time being, dropping down to smaller TFs for entries into rallies. For me buying dips is my aim up until we reach previous all time highs.
Happy Trading!
Chartster
The Daily also posted a very strong bullish engulfing candle with a 350 pip move. This generated enough momentum to break the resistance level in the following day.
The Daily MA's are bullish, whilst weeklies are approaching a possible crossover to the upside.
I expect DOW to reach an area of resistance around 17800, with a pullback to the 17600 support before rallying further up to 18100. Two scenarios will take place at this point; either we'll see price push past this resistance level and test the all time highs. Or we'll see price exhaustion at this point, followed by a pullback before the next rally up.
I am remaining bullish on the DOW for the time being, dropping down to smaller TFs for entries into rallies. For me buying dips is my aim up until we reach previous all time highs.
Happy Trading!
Chartster