Markets

Dow Jones – The Cap Has Been Broken – Columns

After a weaker start, the Dow Jones Industrial Average® confirmed its support at 30,320 points in yesterday’s trading and subsequently moved away to a new all-time high. The index recovered on Tuesday. There were no sales signals that would have been triggered with a slide below the 29,820 point mark. In addition to the well-known cap in the daily chart, a second variant of a trend line has now been added. It is interesting that the index broke both caps on the upside in yesterday’s trading and was able to hold this signal towards the end of trading. This activates an outbreak signal that unlocks further potential to the top. A first goal can be estimated in the range of 31,500 points.

Falling back to the breakout level at 30,674 points would be harmless and could offer further entry opportunities. Below 30,320 points, a first sell signal would arise with a target of 30,116 points. If, on the other hand, the Dow Jones Industrial Average® falls back significantly in the coming days and undercuts the lows at 29,820 points, the trend movement of the past few weeks would at least be interrupted.

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

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Observation period: October 21, 2020 – January 6, 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)

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Observation period: 01/01/2016 – 06/01/2021. 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

UnderlyingWKNAsk rate / EURBase price / knock-out in pts.leverFinal valuation day
Dow Jones® IndexHR2LVQ 56.4224,050.00 4.4701/29/2021
Dow Jones® IndexHR36XM 31.2027,150.00 8.0801/29/2021
Source: HypoVereinsbank onemarkets; Status: 07.01.2021; 3 p.m.

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

UnderlyingWKNAsk rate / EURBase price / knock-out in pts.leverFinal valuation day
DowJones® IndexHR4246 31.8034,800.007.9301/29/2021
DowJones® IndexHR2EBW 17.0933,000.0014.7901/29/2021
Source: HypoVereinsbank onemarkets; Status: 07.01.2021; 3:02 p.m.

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The contribution Dow Jones – The cap has been broken first appeared on onemarkets blog (HypoVereinsbank – UniCredit Bank AG).

Author: Bastian Galuschka

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