Dow Jones Poised for a Bullish Shift in Sentiment
02 June 2023
In this week's technical analysis, we turn our attention to Dow Jones, which has undergone notable developments that can be considered game-changers, particularly in the second half of the week. While Dow Jones may not exhibit the same level of bullishness as its local peers, the dynamic nature of the market suggests that a shift in sentiment could occur rapidly in the coming week.
Dow Jones continues to be confined within a long-term symmetric triangle pattern. Recent price action has seen multiple tests of the lower boundary of this formation, and notably, each test has yielded positive results for the buyers. The price has managed to stay above the support level without triggering a breakout. The occurrence of a double bounce at this critical support level presents an attractive opportunity for long positions. From my perspective, the current target is set at the upper boundary of the triangle, indicating significant upside potential.
The prevailing positive sentiment persists and is expected to remain intact, barring a break below the lower boundary of the symmetric triangle pattern. However, the likelihood of such a scenario occurring at this stage is currently limited, suggesting that the overall bullish outlook prevails.