The Dow has decidedly broken out of of a 2 year trading range that had kept the Dow capped at 27,400, thus triggering the next phase of the stocks bull market to continue higher for another year, first targeting 30k, then 31k for 2020.

TREND ANALYSIS - The Dow continues to make higher highs and lows, so a strongly bullish picture. Again to emphasis that the Dow has broken out to the upside, so any downside price action should be seen as been being corrective.

RESISTANCE : Resistance is clearly at the current high of 29,408, and then 30,000.

SUPPORT : Is first at the recent low of 28,200 and then at just above the string of previous highs at 27,500. So any significant decline from 28,200 would be unlikely to trade below 27,500. Though a break below 27,300 would target 26,000.

TRENDLINES - Rising trend line supports are at 27,500, 28,000 and 29000.

The overall trend picture is bullish i.e. there is no sign for an imminent bear market. Too much support under the market and too soon after the breakout.

MACD - MACD is neutral.

The rest of this analysis that concludes in a detailed trend forecast for the Dow stocks index has first been made available to Patrons who support my work (Will CoronaVirus Pandemic Trigger a Stocks Bear Market 2020?).

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Nadeem Walayat

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Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

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