Dow Jones Bullish Price Action Following the Last Presidential Debate

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Written By: Mircea Vasiu
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    Summary:
  • Dow Jones forms a possible bullish flag ahead of the US elections. After the last Presidential Debate, the Dow prepares for the big event.

Dow Jones is back at the highs of the recent range in the after-hours following the last Presidential Debate. With a little over a week until the big Elections Day in the United States, the Dow Jones keeps a bullish bias.

Buyers stepped in on every single dip so far in the past weeks. As such, the Dow seems to form a bullish flag pattern. A bullish breakout would easily push the Dow to new all-time highs. However, the question for now remains – will the breakout come before or after the elections?

Last Presidential Debate Over

Last night in the United States, the last Presidential Debate took place. Put it simply – no game-changer. However, both candidates made some interesting remarks that may easily influence the stock market in the period ahead.

First, Biden played a tough card against oil companies and pro climate change policies. In doing so, he may have upset the Rust Bet voters with the remarks against the so-called “brown energy”.

Second, Trump made headlines by promising a vaccine within a week. While that is unlikely to happen, at least if one considers the production time needed for a vaccine to be readily available to masses, it may signal that the United States is closer to a cure than many believe.

Dow Jones Bullish Flag Setup

In the meantime, the Dow coils below the all-time high level. Truth be told, the likelihood exist that the index fails to reach a new all-time high ahead of November 3rd elections. For this reason, bulls may want to wait for a breakout before actually going on the long side.

Therefore, it makes sense for bulls to place a pending order at 29,000 with a stop-loss order at 28,100 and a take-profit at 30,750 as suggested by the bullish flag’s measured move. By risking 800 points for a gain of 1,750 points, traders use a risk-reward ratio bigger than 1:2, good enough for trading any market.

Dow Jones Forecast

Written By: Mircea Vasiu

Mircea, MBA in International Business graduating Magna Cum Laudae, trades for a living and contributes to various financial publications for more than six years. He writes about macroeconomics, stock indices, currencies, and most recently ETFs and individual stocks. For the past decade, he’s involved in everything trading related, mostly in the currency market, both with manual and algorithmic trading.

Published by
Written By: Mircea Vasiu