The Dow Jones 30 remains a speculative playground for traders who want to pursue its bullish trend. The Dow has not produced a one-way street for speculators; choppiness has been part of the landscape within the famed index as it consistently creates rushes higher but also generates reversals lower, which test stamina. Future markets in the US are indicating a higher opening for stocks. Yesterday’s trading was rather tough; the Dow Jones 30 opened with a gap lower as the week began, but it was able to incrementally move higher and tested the 31100.00 juncture briefly.
The Dow Jones 30 is challenging record heights in the midst of political drama, and this background influence is not going to end soon. However, the ability of the Dow Jones 30 to consistently challenge new highs remains an attractive lightning rod for speculators who have the ability to remain calm, not over-leverage their positions and monitor the market consistently. After achieving new heights in the middle of last week, which came within shouting distance of the 31200.00 mark, the Dow Jones 30 has faced some headwinds but remains steady.
Some traders may have the determination to try and sell the Dow Jones 30 at these heights, but standing in front of the long-term bullish trend is not likely a call to action for all. Speculators should consider remaining buyers of the Dow Jones 30 if they are conservative and want to pursue bullish momentum by using technical support levels as entry points for their long positions.
Other traders who want momentum to build and then hop onto a trend they believe will continue, may want to use resistance levels like the 31050.00 juncture as a buying mark based on the belief that the Dow Jones 30 is about to challenge higher ground. News via Washington D.C should be given some attention by traders, but importantly, should not be given too much emphasis, unless a new crisis develops suddenly.
Investment houses have demonstrated an ability to keep blinders on and not pay too much attention to the political drama engulfing the US, which has likely helped bolster overall market confidence. Traders should remember that it is very hard to time equity indices, and what they should do is try to have patience and pursue the bullish trend higher, which does not seem like it is going to diminish near term.
Dow Jones 30 Short-Term Outlook:
- Current Resistance: 31050.00
- Current Support: 30950.00
- High Target: 31150.00
- Low Target: 30850.00
