Dow Jones Drives to Fresh Six-Month-Highs After Jackson Hole
Dow Jones Talking Points:
- US stocks have continued their August rallies through the Jackson Hole Economic Symposium, and the Dow Jones Industrial Average is now trading at a fresh six-month high, eclipsing the resistance that was set in February of this year.
- The Dow just crossed the 26k psychological level, and this comes after a support visit to the 25k level just two weeks ago. Below, we look at strategy designed for bullish continuation in the index.
- DailyFX Forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.
Dow Jones Jumps to Fresh Six-Month Highs
The rally in US stocks has continued through the Jackson Hole Economic Symposium, and at this point the Dow Jones Industrial Average is trading at a fresh six-month high; breaking out from and eclipsing the prior swing-high that had showed up in late February. While the 25,000 psychological level helped us to find support in the middle of August, the Dow has now crossed the 26k level as buyers continue to push ahead.
Dow Jones Daily Price Chart: Fresh Six-Month Highs as the Dow Crosses 26k
Chart prepared by James Stanley
In our last article, we took a step back from motivation on the bullish approach out of fear for a larger pullback. We had previously looked at support plays off of the 25,695 level, but when buyers failed to show much strength after a test of that prior February high, coupled with two days of indecision, the prospect of a deeper pullback appeared likely.
That did not happen, as buyers continued to push ahead through the Jackson Hole Economic Symposium, and the bullish theme in US stocks remains. At this point, traders can continue to look for topside continuation as we move towards the all-time-high that was established in January of this year. The bullish extension of this move exposes another point of potential higher-low support, taken from last week’s swing-high at 25,886. This level has been added to the pre-existing support structure that we were looking for, and for traders looking to address US equities in an aggressive manner, this area can be utilized to look for that next stop of support.
Dow Jones Four-Hour Price Chart: Bullish Structure Open for Continuation
Chart prepared by James Stanley
To read more:
Are you looking for longer-term analysis on the U.S. Dollar? Our DailyFX Forecasts for Q3 have a section for each major currency, and we also offer a plethora of resources on USD-pairs such as EUR/USD, GBP/USD, USD/JPY, AUD/USD. Traders can also stay up with near-term positioning via our IG Client Sentiment Indicator.
Forex Trading Resources
DailyFX offers a plethora of tools, indicators and resources to help traders. For those looking for trading ideas, our IG Client Sentiment shows the positioning of retail traders with actual live trades and positions. Our trading guides bring our DailyFX Quarterly Forecasts and our Top Trading Opportunities; and our real-time news feed has intra-day interactions from the DailyFX team. And if you’re looking for real-time analysis, our DailyFX Webinars offer numerous sessions each week in which you can see how and why we’re looking at what we’re looking at.
If you’re looking for educational information, our New to FX guide is there to help new(er) traders while our Traits of Successful Traders research is built to help sharpen the skill set by focusing on risk and trade management.
--- Written by James Stanley, Strategist for DailyFX.com
Contact and follow James on Twitter: @JStanleyFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.