Dow Jones Index Bullish Breakout Aims At 35,000 Target

The Dow Jones Index (US 30) is building a bull flag continuation chart pattern within a larger uptrend. A bullish breakout should confirm a push higher.

Let’s review the price and wave patterns plus review the main targets and what-if scenarios.

Price Charts and Technical Analysis

(Click on image to enlarge)

The US 30 chart needs a break above the resistance trend lines (orange) to confirm a continuation of the uptrend (green arrows):

  • The bullish breakout could confirm a wave 3 (light blue) pattern.
  • The larger wave analysis is indicating a strong uptrend with a potential wave 3 (purple) of wave 3 (red).
  • Recently price completed an ABC (light blue) within wave 4 (orange) at the 38.2% Fibonacci level and 144 ema close. The -27.2% Fibonacci target of that price swing is located at 34,000.
  • But a wave 3 (light blue) could go as far as 34,600 or even 35,000 before losing momentum, if this is a wave 3.
  • Any bearish breakout (orange dotted arrow) would invalidate this immediate bullish outlook. Although the long-term trend is still up and therefore any retracement could simply find support at the 144 ema close (blue dotted arrow).

On the 1 hour chart, price action seems to be building a sideways correction after showing strong bullish impulse (wave 3 green):

  • The sideways range is probably a wave 4 (green), which respects the 38.2% Fibonacci level.
  • A bullish breakout could indicate a push higher. Perhaps as part of the wave 5 (green).
  • A pullback to the 50% Fibonacci level could still be a bouncing spot.
  • Only a deeper break places this wave outlook in danger. But the uptrend still remains intact even if price action retraces, just with a different wave scenario.

(Click on image to enlarge)


Disclaimer: The opinions in this article are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit ...

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