Yesterday, the Dow Jones closed the day around the highs as the bulls remain in the driving seat. This week was basically uneventful with just the ISM Services PMI being the only notable release and, although it surprised to the upside across the board, the jump in prices paid index could be a worrying signal. Today we will see the latest US Jobless Claims figures and then the calendar is empty until the US CPI next Tuesday. The market should start to think about how it wants to position itself into the inflation report.
Dow Jones Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Dow Jones continues to print all-time highs as the buyers pile in at every pullback. We can see that we have a trendline that is defining the uptrend. In case we get a pullback, we can expect the buyers to lean on the trendline to position for new highs. The sellers, on the other hand, will want to see the price breaking below it to position for a bigger correction into the 37777 support first and upon a further break target the 37066 level.
Dow Jones Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see more clearly how the price keeps on breaking the resistances, retesting them and then continuing higher into new all-time highs. We can also notice that in case we get another pullback, the buyers will also have the red 21 moving average around the trendline for confluence.
Dow Jones Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see more closely the recent price action and we can notice that the price has been bouncing around the 38560 level. If we get another pullback, we can expect the buyers to lean on it again as they will also have the confluence with the trendline and the red 21 moving average. The sellers, on the other hand, will want to see the price breaking lower to invalidate the bullish setup and position for a drop into the 37777 support.
