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Technical analysis for Dow Jones Industrial, the index formed a double bottom on the daily chart, bouncing from support and 0.386 FIB retracement on the weekly chart. The focus is now on the range between 33 800 and 35 062. Breaks to the downside of that range will turn this pullback to full breakdown, and it will send the index lower toward, first the 200 EMA and the previous low at 33 271. The second target of this potential breakdown is the 100 FIB extension at 33 000, and the third target is the 1.272 FIB extension at 32 490-32 500, which is also a 0.618 FIB retracement on the weekly chart. The final target of this potential breakdown is the 1.618 FIB extension at 31 790 – 31 800, which is around the 0.386 FIB retracement on the monthly chart.
On the other hand, if the Dow Jones Industrial index breaks to the upside, above the range, and above 35 062, it will resume the bullish trend and send the index higher. The first target of this potential breakup is the previous high at 35 631. If the index breaks above the all-time high, above 35 631, it will resume the third bullish daily chart and send the index higher toward the 2.272 FIB extension at 37 650 and eventually toward the 2.618 FIB extension at 40 000.
Daily chart:
Weekly chart:
