DOW JONES above the 1D MA50 for the first time in month

Dow Jones hit (and closed over) the 1D MA50 on Friday for the first time in more than a month (Feb 20th last closing over it). With 1D technicals on very healthy bullish levels (RSI = 60.420, MACD = 12.500, ADX = 35.536) this is a very positive sign on the long-term. Especially since the RSI crossed over the 4 month LH trendline.

Our TP (33,450) from our trade idea 2 weeks ago (see below) is almost hit, however short term traders need to start and consider the immediate Reistance levels that the index needs to break in order to extend the long term rally. This is firstly the 33,550 High of March 6th and secondly the top of the December Channel Down pattern. A 1D closing above each would be a bullish continuation signal that would target the next level of Resistance. Primarily we look for a closing above the Channel Down in order to target R1 (TP = 34,350). Conversly a rejection and closing under the 33,550 Resistance would target the lower Symmetrical Support (TP = 32,600).



Prior idea:


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