TECHNICAL ANALYSIS
On the daily chart, we can see that the Dow Jones rallied again into the 35000 resistance but got rejected. The price action between the trendline and the resistance is forming an ascending triangle and a breakout on either side generally leads to a strong and sustained move. Therefore, the best strategy at the moment might be to patiently wait for a breakout. On the 1 hour chart, we can see that the price action is choppy and there’s no clear support or resistance level except the 35000 level and the major upward trendline. In fact, if the price falls to the trendline, the buyers should step in with a defined risk below it to position for another rally and target a new high. Alternatively, we should also see the buyers piling in aggressively if the price breaks above the 35000 resistance. The sellers, on the other hand, should do the opposite by leaning on the resistance with a defined risk above it to position for another selloff and pile in even more aggressively if the price breaks below the trendline.
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