The Dow Jones Industrial Average (US 30 index) hit a fresh all-time high of 26,900.50 in pre-market trading on Wednesday, while it is currently in proximity to this peak.
Adding to the conviction for a bullish bias are the positively-aligned Tenkan- and Kijun-sen lines and the RSI which is heading higher. Notice though that the latter has entered overbought territory above 70; a correction is not to be ruled out.
Further gains may meet resistance around the 27,000 level which may hold psychological importance. Deeper into uncharted waters, the price action may meet barriers at other round figures, such as 27,100 and 27,200.
A move down could receive support around the Tenkan- and Kijun-sen lines at 26,615 and 26,324 respectively, before the attention turns to the zone around the 26,000 level. Notice that the area around the latter encapsulates a previous top at 26,166 and the 50-day (simple) moving average at 25,928.
The medium-term outlook is clearly positive: uptrend conditions – higher highs and higher lows – are in place, with trading activity taking place above the 50- and 100-day MA lines, as well as above the Ichimoku cloud.
Overall, both the short- and medium-term outlooks are positive, though some caution is advised in the near-term given the existence of signals pointing to overbought conditions.
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