Dow Jones summons strength - Technical Analysis - 03-02-2016
The Dow Jones Industrial Average dropped in the short term and intraday levels, searching for a bottom to bounce off it higher and keep on the upward trend in the short term, while trading still within an ascending price channel as shown in the attached chart. The index then reached the support of that price channel, along with leaning on the important support of 16,000.00, which also comes about as a forming positive divergence takes place in the Stochastic indicator as shown below the attached chart.
Therefore we expect the index to reverse higher, as long as the support of 16,000.00 holds on, targeting thereafter the pivotal resistance of 16,330.00.
Trend
Bullish