DJIA long-term technical analysis

The index pushed lower in May trading month, the bearish pressure continues at the start of June but immediately reverse upside. Fundamentally, the reverse in DJIA incited by the pause of the trade war between the U.S and China. Later in the middle of the month, the Fed announcement helped the market to boost DJIA near its all-time high. The Fed announced no change in the interest-rate and suggesting possible rate-cut.

On the short-term to middle-term, it seems DJIA will continue bullish. Next month FOMC meeting should be a major one as the market believe 100% the Fed will cut interest rate. (based on CME Fedwatch tool). No rate-cut could trigger sell-off in the index.

Monthly chart

The index continues upward in June and nearly test the all-time high. We expect a fresh all-time high will be printed either this month or next month. However, the continuation of the bullish trend will depend on The Fed decision on interest-rate next month.

We might have the index hovering between 26,000 – 27,000 before the interest-rate decision.

Weekly chart

Not much clue on the DJIA weekly chart, the index recently climb above 26,000 and launch toward 27,000. Traders and investors will wait for the index reaction near an all-time high. Rejection from the resistance should bring the index trade lower toward 26,000.

Daily chart

The first bearish close happened prior to two candlesticks, DJIA fell today with ample momentum. It seems a bearish correction is on the card and we might see the index move toward the top of the blue channel. On the lower part, 26,000 is the level to watch for a possible bounce.

At the current time, the index trend is bullish which suggest traders to maintain long positions and add more long positions when pullback toward support happen.