Dow Jones attempted multiple times last week to break its previous high around the 49,600 level and tested this level repeatedly. Then, on Friday, with a spike move during the New York session, it managed to reach the 50,000 level.
Dow Jones attempted multiple times last week to break its previous high around the 49,600 level and tested this level repeatedly. Then, on Friday, with a spike move during the New York session, it managed to reach the 50,000 level.
Primary Scenario (Higher Probability)
If buying pressure continues, further upside movement toward higher levels is not unlikely; however, it is more probable that this move to higher levels will occur after a short term correction.
Key Price Levels:
Bullish Target: Higher levels after a correction
Alternative Scenario (Lower Probability)
If price faces selling pressure resulting from liquidity absorption by large investors, it is expected that price could decline toward the 47,463 level.
Key Price Levels:
Bearish Target: 47,463
1 Hour Timeframe – Dow Jones
1 Hour Timeframe – Dow Jones Index (US30)
Dow Jones price traded within a ranging structure over the past week. On Friday, following a spike move, it managed to break its previous high and, by forming a price breakout, continued its upward move, rallying to the 50,111 level.
Primary Scenario (Higher Probability)
If buying pressure continues, it is expected that after a short term correction, price will resume its bullish movement.
The corrective zones that can be considered are around the 49,645 level (previous high).
Key Price Levels:
Corrective Zone: 49,645 (previous high)
Alternative Scenario (Lower Probability)
If price faces strong selling pressure and falls back below the previous high level, there is a possibility of a correction toward the 49,200 area.
If the order block in this area is broken, a renewed decline toward the imbalance zone at the 48,600 level becomes likely.
Key Price Levels:
Previous High: 49,645
Bearish Correction Zone: 49,200
Price Imbalance: 48,600