Speculators who are looking at the Dow Jones 30 and thinking that the time to sell is now may want to reconsider their perceptions. Traders always need to consider both sides of the spectrum because money can be made when markets are bullish and bearish by placing long and short orders. However, the Dow Jones 30 is enjoying a clear bull market and all attempts which suggest that now is the time to step off of the elevator upwards may find they miss out on potential profits which can still develop.
Holiday trading volumes are certainly in play and traders need to beware of sudden gyrations hitting equity indices. The Dow Jones 30, however, is continuing to push aside resistance levels with relative ease. Trading is never a one-way avenue and markets do not always move upwards, but trying to predict when the bullish momentum of the Dow Jones 30 will cease has proven difficult and potentially costly for speculators wagering on reversals lower.
Market behavior continues to exude positive sentiment. President Trump’s approval and signature on the new US stimulus bill has added additional short-term fuel to optimism exuding within the global markets. While coronavirus statistics remain terrible in the US, investors are seemingly transfixed on the bullish trend of equities and are focusing on numerical values higher.
Speculators who want to participate may be inclined to wait for pullbacks on the Dow Jones 30 in order to seek reversals higher. One other method traders may want to consider is pursing positive momentum by placing a buy order above current values, which indicates that risk appetite is going to continue to trend upwards. Future markets are signaling that the Dow Jones may be able to test the 30500.00 level near term and this juncture could prove a key psychological level for traders and cause some volatility.
Traders need to understand that volumes will remain light on the major equity indices today, but if the Dow Jones 30 continues to find bullish momentum,this may be generated via programmed software which is being generated by financial institutions not wanting to miss out on the bullish momentum. The record highs on the Dow Jones 30 may give speculators a reason to pause and look for reversals lower in the index, but the trend upwards is unmistakable and buying the Dow Jones 30 may prove profitable.
Dow Jones 30 Short-Term Outlook:
- Current Resistance: 30495.00
- Current Support: 30395.00
- High Target: 30575.00
- Low Target: 30350.00
