Dow Jones

After the index fluctuated slightly, it continued the upside move targeting next 12405 areas, which is 76.4% correction for the entire decline from 14266 to the trough at 6461.

Supporting our expectations for the continued bullishness is represented with:

1.The mentioned channels
2.The 50 SMA which is supporting the current bullishness
3.The recent breach of 61.8% correction which is the key for extending the upside move and exit the general downside trend
On the other hand, momentum indicators are overbought and it will restrict the upside move especially when facing the psychological 12,000 areas, which might force the index lower in a slight correctional wave.

In general, we expect the upside move to continue over short and medium term basis, though breaching 11600 might pressure the index further south towards 11275 which is the key to preserve the general upside move for the index.

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