BULLISH RECOVERY ON OLD HIGHS
After a bullish rally of several consecutive days, which saw the index reached a new all-time high of 41,415 points, the US industrial index has seen a slight correction. With the short- to medium-term uptrend remaining intact, market operators will have to focus on the 40,000-point zone, a former all-time high that has given buyers a hard time for several months.
Technically, a return to 40,000 points could provide a new entry point for buyers who missed the train when the 40,000 level was broken.
The 40,000-point level could act as new support, given that it also represents 61.8% of Fibonacci retracements and is also supported by an uptrend line.
At this stage, it is difficult to say whether this break of the former all-time highs is a buying trap and whether a more significant correction will take place. However, it would be likely that a buying force could enable the price to take advantage of a technical rebound at this level.
Conversely, a break of the 40,000-point price level, the 61.8% Fibonacci level and the uptrend line would pave the way for a much larger correction.
Maxime Dominguez - Technical Analyst for Activtrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Technically, a return to 40,000 points could provide a new entry point for buyers who missed the train when the 40,000 level was broken.
The 40,000-point level could act as new support, given that it also represents 61.8% of Fibonacci retracements and is also supported by an uptrend line.
At this stage, it is difficult to say whether this break of the former all-time highs is a buying trap and whether a more significant correction will take place. However, it would be likely that a buying force could enable the price to take advantage of a technical rebound at this level.
Conversely, a break of the 40,000-point price level, the 61.8% Fibonacci level and the uptrend line would pave the way for a much larger correction.
Maxime Dominguez - Technical Analyst for Activtrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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