Dow Jones 30 Price Forecast – Dow Jones 30 Continues to Look Stable

Dow Jones 30 Technical Analysis

The Dow Jones 30 has fallen a bit during the trading session on Thursday. And at this point in time, the market looks very consolidative, and I think that will probably continue to be the case. Quite frankly, this is a scenario where I think if we do pull back from here, the 41,600 level will be a bit of a floor, and I do think a lot of people will pay close attention to it. This is an area that previously had been significant resistance in the past, so it brings in the idea of “market memory” here.

So, with the market memory, then it makes quite a bit of sense that as the 50 day EMA is racing towards that area, there are plenty of reasons to think that it lines up nicely for a buy on the dip opportunity. On the upside, we have the 42,750 level as resistance, and if we can break above there, then it’s likely that the market will go much higher.

All things being equal, we have a scenario where we’re in an uptrend and we’re just trying to work off some of that excess froth. With the loose monetary policy coming out of the Federal Reserve, then I think you’ve got a scenario where a lot of traders are taking that liquidity and throwing it into the stock market as they typically do. And the blue chip stocks, of course, are one of the major places they do so.

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