DJIA long-term technical analysis

Dow Jones Industrial Averages is major indices traders track to determine the overall trend of the stock market. The index enjoyed prolonged uptrend since 2008 crises. If we calculate total gain, the index has gained more than three times its value from 6,469 low to 21,169 record high. It is a 14,700 (2,272%) gain in eight years, and it looks like the index still looking for new height.

Since the reign of President Trump, there has been a lot of controversial issue brewing and unsettling the market. Fortunately, the index looks disregarding all issue and continue higher. Thought, the market need to clear political tension and uncertainties in the market before it could continue moving up.

Recently, Ray Dalio who is known as the largest hedge fund in the world founder forecast the bullish trend will continue for one or two years. However, the next downturn will be epic, hit hardest socially and politically. Nevertheless, traders need to watch carefully what the smart money think and do before the next downturn.

Monthly chart

Strong uptrend continues in Dow Jones Industrial Averages monthly chart. The index soared higher to a new record high after President Trump elected as president and it continues this year. We could see the bullish channel on the monthly chart and it looks like the top of the channel will be reached soon.

If the price retrace, 20,000 psychological number is the level to watch for support.

Weekly chart

The bull also in control of weekly chart, the price stick near resistance and looks aiming for a new record high. The price might break higher, or it could continue moving between 20,400 – 21,000 area. The Fed expected to increase the interest rate on June, and it might drive the index sharply after the announcement.

Daily chart

The price stalled near 21,000 and rejected several times from it. If the index could not move higher and decide to continue lower, there is a possible double top pattern. The pattern has support at 20,400 which if broken will lead the index into a medium-term bearish trend.