Dow’s had a fantastic week, a good rise (the weekly candle is sure a sight to sore eyes), albeit the volumes are still not very convincing. Look at the plus side; we have a positive divergence developing on both the RSI and MACD. Calling it a bottom will be too premature, we have a good resistance band overhead as marked on the chart, the nearest MA, the 20 periods is still way above. The only thing the price can do is now start consolidating sideways so as to bring down the MA to a more attainable distance. The supports; none but yes to quote a figure, 6500 for starters should be retested and held, to let it be of any significance!
The daily chart below shows that the price is hovering around the 20 periods MA and the overhead resistance lays in the form the trend lines and the 50 periods MA all forming a strike out zone from 7450 to 7600. Whereas the likely support/ retest zone looks like at 7030-6930, personally I would like Dow to come down to this level and then take a jab at the trend line and the 50 periods MA above!
"Vision without action is a daydream. Action without vision is a nightmare." Japanese Proverb
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