Last night, Dow posted a +123 points rise, outstripping the previous day's horrific slaughter of the market. Horrific because it was the first time Dow lost more than 100 points in a day in this year. But it is back above those levels again. I decided to look at its weekly chart to have a better clue of which direction it is heading and if the uptrend is in question as its erratic behaviour over the last 2 days have made me wanted to find out more.
It is clearly showing higher highs and higher lows, plus a strong support line at 12570. The trend is going up and approaching 13000 mark but of course, the trend does seem to show a slowdown. Volumes have been steadily declining so would not suggest making any market entry at this point in time unless Friday's market is equally stellar. Still lots of potential tripping points ahead.
However, as for its rise, it does not seem to be ending its trend still. RSI and MACD are nicely trending up with RSI having strong support line.
I believe 13000 is close by. But not without hiccups.
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