Markets

Dow Jones – Major support zone ahead

The Dow Jones Industrial Average® got under the wheel last Thursday, negating the previously broken upgap with a large downgap. These two price gaps that follow each other in short succession in the chart have created a so-called island reversal, a very bearish chart formation that is considered a trend reversal formation.
With a view to the overall development, the setback of the past few days has been put into perspective again. Rather, important support has so far been intact. The EMA50 should be mentioned in the daily chart at currently 24,930 points and below that the support zone between 24,765 and 24,680 points. There are striking intermediate highs for the months of April and May, which now act as supports. Only a relapse under these supports would negate the buy signal from May again.

On the upside, however, the chart picture will only become more bullish if the 26,000-point mark is recaptured. Above 26,384 points, the Dow Jones Industrial Average® could then start closing the gap at 26,938 points. A weak opening is to be expected in today’s trade.

Dow Jones Industrial Average® index in points on daily chart; 1 candle = 1 day (log. Candle chart)

Viewing period: 04.03.2020 – 12.06.2020. Historical considerations are not reliable indicators of future developments. Source: www.guidants.com

Dow Jones Industrial Average® index in points per month; 1 candle = 1 month (log. Candle chart)

Observation period: June 1, 2015 – June 12, 2020. Historical considerations are not reliable indicators of future developments. Source: www.guidants.com

You will find leverage and investment products for speculation on an upward or downward movement or sideways movement of the DAX® here. With the HVB knock-out trading tool on Guidants, you can find the right product for your trading strategy at the click of a mouse under risk-reward criteria. Try it!

NEW: Get a large part of your trading costs back! Place orders as usual through your broker or bank. Cashback via the free floribus app activate. Credit of up to 50 euros, per trade from 1,000 euros, takes place in a few days – up to a maximum of 250 euros per month. More information at: www.onemarkets.de/cashback

Please note the important information and the disclaimer.

This information does not constitute investment advice, but an advertisement. The public offer is made exclusively on the basis of a securities prospectus that has been approved by the Federal Financial Supervisory Authority (“BaFin”). The approval of the prospectus is not to be understood as a recommendation to purchase these UniCredit Bank AG securities. The prospectus including any supplements are decisive and the Final Terms. It is recommended that you read these documents carefully before making any investment decision in order to fully understand the potential risks and opportunities when deciding to invest. You are about to purchase a product that is not easy and difficult to understand.

How the HVB products work

The Dow Jones Post – Major Support Zone Ahead first appeared on onemarket’s blog (HypoVereinsbank – UniCredit Bank AG).

Author: Bastian Galuschka

Note: PERSONAL-FINANCIAL.COM publishes analyzes, columns and news from various sources in this section. PERSONAL-FINANCIAL.COM AG is not responsible for content that has been posted by third parties in the “News” area of ​​this website and does not adopt it as its own. This content is particularly recognizable by a corresponding “von” label below the article heading and / or by the link “To read the full article, please click here.”; the named third party is solely responsible for this content.

Related Articles

Back to top button