The Dow Jones is hovering in record territory with momentum tepid, however, this doesn’t mean the rally is ready to stall out. Bull markets can drift and frustrate both sides of the market. Holding above the prior record high at 31272 positions it to keep on rallying. Even if dips back below the old high, as long as price action isn’t pervasive weakness could be short-lived before price bounces back. Despite being at record levels there are a couple of lines in relative confluence to watch. A top-side trend-line from June and November intersect in the 31720/850 area. While not viewed as a major source of resistance given the generally bullish context, it could be enough to induce a pullback with price action lacking real power.
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Dow Jones Daily Chart (in record territory, watch top-side trend-lines)
Dow Jones Chart by TradingView
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Originally Posted on: https://www.dailyfx.com/forex/technical/home/analysis/spx500/2021/02/11/Dow-Jones-Technical-Outlook-Levels-Lines-to-Watch-in-the-Short-term-PRtech.html
By: Paul Robinson