Watch These Key Dow Jones Industrial Average Levels After Record-High Close

The Dow Jones Industrial Average (DJI) added 0.5% connected Monday to station a grounds adjacent astatine 40,211.72, nan blue-chip index’s first caller all-time precocious (ATH) since May 17 and its 20th grounds adjacent this year.  Financials, which bid a 22% weighting wrong nan index, helped powerfulness gains yesterday.

Below, we return a person look nan index’s floor plan and usage technical analysis to constituent retired important trading levels to watch.

Breakout From Ascending Triangle

The DJIA trended sharply higher betwixt October 2023 and March this twelvemonth earlier consolidating wrong an ascending triangle This pattern, which consists of a horizontal line connecting a bid of plaything highs and a rising trendline that links astatine slightest 2 swings lows, indicates a continuation of nan index’s longer-term uptrend.

Indeed, nan value collapsed supra nan pattern’s apical trendline connected Monday successful a move that could spot nan index proceed its climb higher passim earnings season.

Monitor These Key Price Targets Amid Further Upside

To forecast a shorter-term imaginable price target, we tin usage nan measuring principle, sometimes called nan measured move technique. We do this by calculating nan region adjacent nan commencement of nan ascending triangle successful points and adhd that magnitude to nan pattern’s apical trendline. 

Therefore, we adhd 3,500 to 40,000, which predicts a target of 43,500. This provides a wide area wherever nan floor plan whitethorn look trading pressure, particularly if different method indicators constituent to overbought conditions successful nan scale astatine nan aforesaid time.

We tin task a longer-term value target by utilizing a bars pattern. This involves taking a snapshot of nan uptrend that preceded nan ascending triangle and applying it to nan May plaything low, which guides a wide target of astir 46,615.

Keep These Levels successful Mind During Retracements

Despite nan bullish technicals, short-term retracements stay a possibility, particularly pinch nan relative spot scale (RSI) flashing an elevated reference supra nan closely-watched 70 threshold. During periods of profit taking, investors should show 2 cardinal levels.

Firstly, support an oculus connected nan 40,000 area, a region wherever nan scale would apt pull buyers adjacent nan ascending triangle’s apical trendline and nan psychological information number.

Secondly, it’s besides worthy watching nan 39,300 area, wherever nan index’s value presently finds a confluence of support from nan pattern’s little trendline and rising 50-week moving mean (MA).

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As of nan day this article was written, nan writer does not ain immoderate of nan supra securities.