Markets

Dow Jones – The wedge stays in the running – Columns

Tuesday,
05/01/2021
15:42

of onemarkets blog

| Views: 221

From a technical chart point of view, the old year left nothing to be desired in the Dow Jones Industrial Average®. The index worked off the target at 30,620 points on the last trading day of 2020. The index opened at another high yesterday, but was then sold heavily. The wedge formation in the daily chart since November, which has been mentioned several times at this point, already seemed ticked off and softened. With yesterday’s development, however, it becomes clear that its lower limit now acts as a resistance. The lows around 29,820 points are still holding. If these are also undercut, the chart image would become more cloudy. Staggered downside targets for this bearish scenario are initially 29,569 points and below that at 29,199 and 28,958 to 28,892 points.

On the upside, however, the index has to recapture the hurdle at 30,320 points. Even in this case, the potential in the direction of the wedge boundaries would initially be manageable. A little caution in the current situation cannot hurt after yesterday’s trading day.

Dow Jones Industrial Average® Index in points on the daily chart; 1 candle = 1 day (logical candle chart display)

old
Observation period: October 15, 2020 – January 4, 2021. Historical considerations are not reliable indicators for future developments. Source: www.guidants.com

Dow Jones Industrial Average® Index in points on the monthly chart; 1 candle = 1 month (logical candle chart display)

old
Observation period: 01/01/2016 – 04/01/2021. Historical considerations are not reliable indicators for future developments. Source: www.guidants.com

Investment opportunities

Turbo Bull on Dow Jones Industrial Average® Index for speculation that the index will rise

Underlying WKN Ask rate / EUR Base price / knock-out in pts. lever Final valuation day
Dow Jones® Index HR2LVQ 49.96 24,050.00 4.92 01/29/2021
Dow Jones® Index HR36XM 24.73 27,150.00 9.95 01/29/2021
Source: HypoVereinsbank onemarkets; Status: 05.01.2021; 2:32 pm

Turbo Bear on the Dow Jones Industrial Average® Index for speculation that the index may lose value

Underlying WKN Ask rate / EUR Base price / knock-out in pts. lever Final valuation day
DowJones® Index HR4246 38.33 34,800.00 6.40 01/29/2021
DowJones® Index HR2EBW 23.52 33,000.00 10.45 01/29/2021
Source: HypoVereinsbank onemarkets; Status: 05.01.2021; 2:34 pm

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The contribution Dow Jones – The wedge remains in the running first appeared on onemarkets blog (HypoVereinsbank – UniCredit Bank AG).

Author: Bastian Galuschka

In the onemarkets blog, experts from HypoVereinsbank onemarkets and technical analysts from GodmodeTrader will tell you what will move the markets before the stock market starts. During the day, the editors keep an eye on the DAX, Dow & Co. for you and show you how you can benefit from the ups and downs with leverage products.
http://blog.onemarkets.de

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