Will the latest Dow Jones surge reach all-time highs?

Juli 02, 2021 13:00

The Dow Jones 30 stock market index (DJI 30) surged more than 250 points ensuring that traders are now firmly focused on the record high of around 35,101.

The index has lagged the Nasdaq 100 and S&P 500 in recent weeks, as investors moved away from the ‘reopening trade’ back into tech stocks, on heightened concerns of the delta variant.

Technically the index has been very interesting, due to its recent bounce of a horizontal support line of a medium-term consolidation.

Source: Admirals MetaTrader 5, DJI30, Daily - Data range: from Oct 8, 2020, to Jul 1, 2021, performed on Jul 1, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.

 

Evolution of the last 5 years:

  • 2020: 7.09%
  • 2019: 22.66%
  • 2018: -5.46%
  • 2017: 24.76%
  • 2016: 12.74%

 

As the price has most recently bounced off the lower horizontal support level, the next target for the bulls is the horizontal resistance line of the consolidation.

From here, either sellers may take control on a false breakout, or the price will break through and continue. Keep an eye on price action to help confirm who is in control of the market.

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