Dow Jones, Dax 30 Technical Forecast: Prices Eying a Test of Monthly High
Dax 30, Dow Jones Outlook
Dow Jones – DAX 30 – Buyers in Control
On August 30, the Dow Jones corrected higher after creating a higher high at 26,551. On Tuesday, the index carved out a higher low starting a fresh uptrend. Similarly, the Dax 30 has been trading higher and printed on Friday 12,206 -its highest level in nearly five weeks.
Alongside this, the Relative Strength Index (RSI) on both indices climbed towards 60 indicting to the buyer’s domination at this stage.
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Dow Jones PRICE Daily CHART (Oct 25, 2017 – Sep 9, 2019) Zoomed OUT
Dow Jones PRICE Daily CHART (April 20 – Sep 9, 2019) Zoomed IN
Looking at the daily chart, we notice last week the Dow jones remained trading in current trading zone 26,050 – 27,403. The index tested the low end of the zone, then pushed higher. This could open the door for the index for a test of the high end, contingent on clearing the weekly resistance levels underlined on the chart (zoomed in).
Thus, a break above the high end of current trading zone could lead Dow jones to print its all times high. A close above the high end may push the price towards 112.2% Fibonacci extension 27,687.
On the other hand, any failure to close above the high end could reverse the price’s direction sending the index back to the low end of the zone. Further close below the low end, may see the Dow Jones trading even lower towards 24,860. Although, the weekly support levels underscored on the chart need to be considered.
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Dax 30 Daily price CHART (DEC 20, 2018 – Sep 9, 2019) Zoomed out
Dax 30 Daily price CHART (DEC 20, 2018 – Sep 9, 2019) Zoomed In
Looking at the daily chart, we notice on Wednesday the Dax 30 rallied to a higher trading zone 11,935 – 12,490 eyeing a test of the high end of the zone.
Thus, a close above the high end could push Dax 30 towards 12,840. That said, the resistance area and levels marked on the chart (zoomed in) should be kept in focus. Further close above this level may continue bullish price action towards 13,208. Taking into consideration the weekly resistance levels underlined on the chart.
On the flip side, any failure in closing above the high end could change the price’s course sending it back to the low end of the zone. Further close below the low end may press the index towards the vicinity 11,690 – 11,720. Nonetheless, the weekly support levels underlined on the chart should be monitored.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.