Trading US30 / Dow Jones Industrial Average

Research Notes For 02 to 06 June > https://www.unum.capital/post/r0206june

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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 for US30:

  • 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 tactical short-sell opportunity if the price fails to hold prior session range highs.

  • Medium Term (Approximately Next 2 to 4 Weeks): The model indicates "Attempting A Bullish Reversal Following A Consolidation Phase."

    • Approach: The medium term suggests that the recent bullish activity is likely a strong attempt to reverse from a prior consolidation. This supports a bullish bias over the next few weeks.

  • Long Term (Approximately Next 5 to 8 Weeks): The model states, "Attempting To Rebound Within A Range General Trend Up-Buy/Long On Strong Bids Near The High Of Range."

    • Approach: The long-term perspective indicates an attempt to rebound within a range, suggesting opportunities to buy or go long on strong bids near the high of that range.

• Overall Trading Considerations for US30:

• 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 considering tactical short-sell opportunities if the price fails to hold prior session highs.

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

• Long-term rebound opportunity: The long term shows an attempt to rebound, highlighting opportunities to buy/long on strong bids near the high of the range.

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

Lester Davids

Senior Investment Analyst: Unum Capital