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Dow could break channel top: O'Hare
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Steve O'Hare from First4Trading.net is looking to go long on the US30 index. O'Hare explains why in a technical analysis.
The weekly chart posted a bullish formation which looks similar to a morning star formation which normally occurs at the end of a downtrend. This indicates good potential for a move back towards the channel top which comes in around 18,220.
Indicators such as MACD show momentum remains positive as the pull-back from recent highs remains above the previous downward trending resistance on a closing basis
. The daily chart highlights a couple of interesting looking formations.
With dips continuing to attract buyers and MACD indicating a positive skew on daily momentum also
. An AB=CD correction looks to target 18,250 and this lines up with the 161.8% Fibonacci projection.
The Ichimoku cloud has acted as support and provides an ideal platform to launch a further drive higher.
O'Hare looks to set longs around current levels (17,900) and on a dip to 17,750 with a hard stop placed at 17,600
. The target is 18,250 and possibly towards the 18365 all-time high
.