Weekly closing price: 23506
US stocks extended higher for an eighth consecutive session last week, dragging the index up to a fresh record high of 23550. Should the unit pullback this week, the next weekly downside target in view is demand coming in at 22216-22431. On the , the closest demand base can be seen at 23321-23403.
Friday was a relatively quiet day for the DJIA , down 0.02% on the day. As you can see, the H4 candles recently crossed swords with a channel resistance extended from the high 23452 and ended the session printing a full-bodied H4 candle.
Suggestions: In light of Friday’s H4 closing candle and the aforesaid H4 channel resistance, further downside could be seen to the neighboring H4 channel support etched from the low 23250 today/this week. Should H4 price test the point at where the channel support and November’s opening level at 23392 converge (green marker), this is a valid long, in our opinion. Even more so considering that the monthly opening level is sited within the aforementioned daily demand – a perfect area to measure a stop-loss order from!
Data points to consider: FOMC member Dudley speaks at 5.10pm GMT .