The Dow Jones Industrial Average (DJI) added 0.5% on Monday to post a record close at 40,211.72, the 澳洲幸运5官方开奖结果体彩网:blue-chip index’s first new 澳洲幸运5官方开奖结果体彩网:all-time high (ATH) since May 17 and its 20th record close this year.  Financials, which command a 22% weighting within the index, helped p🏅ower gains yesterday.

Below, we take a closer look the index’s chart and use 澳洲幸运5官方开奖结果体彩网:technical analysis to point out important trading levels to watch.

Breakout From Ascending Triangle

The DJIA trended sharply higher between October 2023 and March this year before consolidating within an 澳洲幸运5官方开奖结果体彩网:ascending triangle This pattern, which consists of a 澳洲幸运5官方开奖结果体彩网:horizontal line connecting a series of swing highs and a rising trendline that links at least two 澳洲幸运5官方开奖结果体彩网:swings lows, indicates a continuati🌱on of the index’s longer-term uꦚptrend.

Indeed, the price broke above the pattern’s top trendline on Monday in a move that could see the index continue its climb higher throughout 澳洲幸运5官方开奖结果体彩网:earnings season.

Monitor The✃se Key Price Targets Amid Further Upside

To forecast a shorter-term potential 澳洲幸运5官方开奖结果体彩网:price target, we can use the 澳洲幸运5官方开奖结果体彩网:measuring principle, sometimes called the measured move technique. We do this by calculating the distance near the start of the ascending triangle in points and add that amou☂nt to the pattern’s top trendline. 

Therefore, we add 3,500 to 40,000, which predicts a target of 43,500. This provides a general area where the chart may face selling pressure, especially if other technical indicators point to 澳洲幸运5官方开奖结果体彩网:overbought conditions in the index at the same time.

We can project a longer-term price target by using a bars pattern. This involv💮es taking a snapshot of the uptrend that preceded the ascending triangle and applying it to the May swing low, which guides a general target of around 46,615.

Keep These Levels in Mind During Retracements

Despite the bullish technicals, short-term retracements remain a possibility, especially with the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) flashing an elevated reading above ♋the closely-watched 70 threshold. During periods of profit taking, investors should monitor two key levels.

Firstly, keep an eye on the 40,000 area, a region where the index would likely attract buyers near the ascending triangle’s top trendline and the 澳洲幸运5官方开奖结果体彩网:psychological round number.

Secondly, it’s also worth watching the 39,300 area, where the index’s price currently finds a confluence of support from the pattern’s lower trendline and rising 50-week movi🎀ng average (MA).

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