The Dow Jones 30 was soft in premarket trading, as we are looking to see whether or not things can turn around. In fact, we have seen this play out in a bullish move later.
Dow Jones 30
The Dow Jones 30 initially pulled back just a touch during the trading session on Wednesday to test or threaten the 52,000 level, which is a short-term floor and has been important a couple of times. Ultimately, this is a market that looks like it is trying to get back into the consolidation area that we have been in for a couple of weeks.
Top Regulated Brokers
The 53,000 level is an area that is a ceiling, and if we were to break above there, market participants could start to chase this overall breakout. Short-term pullbacks, I think, continue to see plenty of buyers, and even if we break down below the 52,000 level, the 50-day EMA is an area that we watch very closely. This has been fairly reliable as of late.
Technical Levels and Channel Uptrend
This has been more or less like an uptrend line, and the markets continue to respect that as support from what I can see. Ultimately, this is a market that was fairly sluggish early in pre-market, but since then we have started to take off to the upside.
Ultimately, this is a 45-degree angle type of uptrend that we've been in, and it's more or less a channel, and there's no real reason to think that that changes. Rising interest rates don't seem to be influencing market behavior right now, and if that continues to be the case, then there's really not a whole lot out there that's stopping this, other than the occasional war headline, which I think at this point in time the markets are starting to ignore.
Ready to trade our stock market forecast and analysis? Here are the best CFD stocks brokers to choose from.