Dow Jones 30 Price Forecast – Dow Jones 30 Continues to Build Support

Dow Jones 30 Technical Analysis

The Dow Jones 30 dropped a bit during the early hours on Wednesday as it looks like we are trying to figure out whether or not there are buyers underneath. I think at this juncture, you have a scenario where the 41,600 level underneath is the previous resistance and I think at this point in time, it will be support. This of course assumes we even dropped that far. The 50 day EMA is racing towards that area, so I think that also offers a certain amount of support as well.

Keep in mind with the recent interest rate cuts coming out of the Federal Reserve, it looks as if people are going to be running towards stocks as it looks like cheap money is here again. If that’s going to be the case, then I think short-term pullbacks continue to be buying opportunities. Ultimately, if we do rally from here, and I think we will, eventually we will have to deal with the 42,750 region. This area has been important previously, and it should be so in the future.

If and when we break above there, then $43,000 is the next target. Either way, with the loose monetary policy and the fact that these are 30 blue chip stocks, it’s very likely money will continue to come to this index time and time again. And at this point, I think we are just simply digesting some of the gains from the recent impulse higher.

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