Trading US30 / Dow Jones Industrial Average

Research Notes For 09 to 13 June > https://www.unum.capital/post/r0913june

Trade Local & Global Financial Markets with Unum Capital.

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Here's a breakdown of the current price action:

• The 7-day trend is indicated as "Strong," while the 14-day trend is "Bullish."

• Comparison: Both the short-term (7-day) and slightly longer short-term (14-day) trends indicate upward momentum ("Strong" and "Bullish" respectively). This suggests a consistent buying pressure across these timeframes. The "Bullish" 14-day trend reinforces the "Strong" 7-day trend, indicating that the recent strength is part of a broader upward movement.

Potential Trading Approach:

• Short Term (Approximately Next 1 to 10 Trading Days): The model notes, "In or Commencing Upward Trend However Strongly Consider The Potential Failure To Hold Prior Session Range Highs Which Will Create A Tactical Short-Sell Opportunity."

  • Approach: While the trend is upward, strongly consider the potential for a failure to hold prior session range highs. Such a failure would create a tactical short-sell opportunity.

• Medium Term (Approximately Next 2 to 4 Weeks): The model indicates "In or Commencing Upward Trend However Strongly Consider The Potential Failure To Hold Prior Session Range Highs Which Will Create A Tactical Short-Sell Opportunity."

  • Approach: Similar to the short term, the medium-term outlook suggests an upward trend, but with a strong caution about potential failures to hold prior session range highs, which would present a tactical short-sell opportunity.

• Long Term (Approximately Next 5 to 8 Weeks): The model states, "In or Commencing Upward Trend However Strongly Consider The Potential Failure To Hold Prior Session Range Highs Which Will Create A Tactical Short-Sell Opportunity."

  • Approach: The long-term perspective also shows an upward trend, but with the same strong caveat about potential failures to hold prior session range highs, leading to tactical short-sell opportunities.

Overall Trading Considerations:

• Consistent bullish momentum: Both short and slightly longer short-term trends are bullish, supporting upward price action.

• Short-term caution: Despite the buying pressure, the model advises against chasing and suggests looking for short-sell entries on weakness relative to the prior session's high.

• Medium-term bullish reversal: The medium term reinforces the bullish sentiment following a consolidation.

• Long-term breakout with a caveat: The long term shows a breakout, but highlights the importance of holding prior session highs to avoid a retest of the breakout level.

In summary, for US30, the current view is bullish across short to medium terms, with a long-term bullish sentiment following a breakout. However, short-term traders should be cautious of potential overshoots and failures at prior session highs for tactical short opportunities.

Lester Davids

Senior Investment Analyst: Unum Capital