Technical outlook:
Dow Jones rose to the 31,570 highs intraday on Monday before finding resistance. The index had earlier dropped through the 29,600 lows before bulls came back in control. It is seen to be trading at around the 31,400-50 zone at this point in writing and is expected to push through the 32,500 levels in the next few trading sessions. Ideally, prices would hold above 29,600 for now.
The Dow Jones has carved a meaningful top at around the 36,952 highs on January 05, 2022. Since then, the benchmark index has remained in control of bears sliding over 6,900 points towards 29,600 on June 17, 2022. Ideally, bulls are expected to remain in control over the next several trading sessions pushing prices through 32,400 and up to 34,200.
Dow Jones has also managed to carve a lower degree upswing between 29,600 and 31,570 in the past few trading sessions. The index could produce intraday corrective drops but prices are expected to stay above the 29,600 interim lows going forward. Traders might be preparing to hold long positions with a potential short-term target of around 32,400.
Trading plan:
Potential rally towards 32,400 and 34,200 against 29,000
Good luck!
