- Summary:
- Dow Jones remains in a rising channel despite failing at the 30,000 level multiple times so far. The key moving forward remains with the series of higher lows.
The last trading day of the month should see some interesting price action on the Dow Jones. On the one hand, traders already focus on the NFP to be released later in the trading week. On the other hand, the volatility might increase as we start a new, shorter trading month than usual.
The Dow and the equity markets, in general, remain very well bid. So far, all the dips have been bought, and the Dow still struggles at the 30,000 level. Unless it manages to close above the level, sellers will keep pressuring on the lower edge of the channel.
Powell’s testimony this week is key for the price action in equity markets. As such, look for Tuesday and Wednesday to be decisive for the Dow’s direction.
Dow Jones Technical Analysis
The chart below shows how the Dow Jones index kept its rising channel for quite some time now. If we split the channel into parts, the bias remains bearish while in the lower half and bullish while in the upper one. Therefore, conservative bears may want to see the Dow breaking out of the channel and below the previous higher low. Such a bearish break should trigger more bearish interest toward 28,600. On the flip side, a move back into the upper half of the rising channel shifts the bias bullish.
Dow Jones Price Forecast
