The Dow Jones Industrial Average is trading around 49,592, rebounding after hitting the lower boundary of the uptrend channel that has been forming since early April. It shows upside potential, and we believe it could continue to rise in the coming days.
If, in the coming hours, the index consolidates above 49,698, this could be seen as a buying opportunity with targets around the psychological level of $50,000, and it could even reach the 50,781-point mark.
Conversely, if in the coming days the Dow Jones falls below 7/8Murray and, in turn, decisively breaks the uptrend channel and consolidates below the 200 EMA around 49,028, this could be considered a bearish scenario, and we could expect the DJ to test 48,437 points and could even reach the 6/8 Murray level around 47,656.
The Eagle indicator is showing a bullish scenario for the Dow Jones, but we should look for long positions if the price consolidates above 49,700.
The double top formation could be signaling a bearish move in the medium term, but this could only be confirmed if the Dow Jones breaks and consolidates below 49,000.
