Dow Quarterly Chart.
The past year has seen a strong, persistent rally on the .
Could there be further upside in store? Perhaps another monster rally? Let’s look at the chart.
Today’s chart takes a very long-term view of the Dow Industrials. This “quarterly” chart illustrates the long-term rising bull market channel with blue shading marked by each (A). Taking our analysis one step further, we can apply Fibonacci to the 1974, 2003, and 2009 lows marked by each (1).
As you can see, the Dow Industrials broke out over the 100% Fibonacci extension before retesting it twice. It then moved out over the 261.8% Fibonacci before testing it last year. And now the Dow Jones Industrial Average is trying to breakout over the 423.6% Fibonacci. This area also marks the upper end of the rising channel at (2), making it a “twin breakout” resistance area.
Will the Dow Industrials pause here or break out?
If the Dow Industrials can record a “twin breakout” at (2), another leg higher in the bull market may be in store. Stay tuned.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.